economic systems-Flocabulary

Every economic system answers three questions. What is produced? How is it produced?

• For whom is it produced?

• Why is it being produced?

• Should it be proeuced at all?

• How easily can it be produced?

An economic system is a society's system of production, distribution and consumption of

• natural resources

• goods and services

• stocks and bonds

• factors of production

Who owns factors of production in a command economy?

• private citizens

• religious institutions

• the government

• all of the above

True or false Production is typically based on a quota in a command economy

• true

• false

which of the following is not a characteristic of a market economy?

• profit is the motivation for most businesses

• supply and demand dictate price and production

• competition between businesses is discouraged

If supply is low and demand is high

• prices rise

• prices drop

• prices remain flat

• competition disappears

In theory which type of economic system should not experience market fluctuations.

• command economy

• mixed economy

• market economy

• all of the above

which of the following best describes the Soviet Union in the 20th century?

• Capitalism led to corruption and totalitarian rule

• communism led to corruption and totalitarian rule

• capitalism led to equal distribution of wealth and total fairness

• communism led to equal distribution of wealth and total fairness

Which of the following leads to better, less expensive products in a capitalist economy?

• quotas

• competition

• market fluctuations

• inequality

Which of the following countries has economy?

• China

• United States

• both A and B

• Neither A nor b