Economic Questions Mrs. Fisher

In a communist country, such as the former Soviet Union, most economic decisions are made by

• the central government

• consumers and producers

• the owner of major industries

A common feature of the economic systems in the United States and Canada is that both —

• allow people to own private property

• restrict factory ownership to the government

• place a salary cap on business leaders’ earnings

• use government quotas to determine what to produce

Which of the following is true of a market economy, but not true of a communist system?

• Supply is determined by the government.

• Industrial production meets government quotas

• Government exercises less control of the economy.

• Government determines consumer product availability

What is the difference between a service industry and manufacturing?

• Service industries produce goods for sale

• Service industries produce intangible goods intangible means you can feel, see or touchh)

Which economic system is subsidized or supported by high tax rates?

• Traditional economy

• Free Enterprise System

• Socialism

• Communism

One advantage of the Free Enterprise System is:

• government makes all decisions

• free college and medicines for all

• crafts and skills are passed down from generation to generation

• competition eliminates the abuse of economic power

There is no unemployment in this economic system-

• Market System

• Communism

• Socialism

• Traditional Society

Supply, price and demand are key in this economic system

• Command Economy

• Free Enterprise System

• Socialism

• Traditional

Innovation and creativity are encouraged in this economic system-

• Socialism

• Market System

• Communist System

• Traditional

Which sector of industry does coal mining and farming belong to-

• Primary

• Secondary

• Tertiary

• Quartinary