Economics Review

Each economic system should answer three basic questions, which of the following is not one of those questions?

• What should be produced?

• How should it be produced?

• For whom should it be produced?

• Where should it be produced?

The economic system where customs and habits of the past are used to decide what and how goods will be produced, distributed, and consumed is known as...

• Traditional

• Command

• Market

• Mixed

In what economic system are jobs passed down from generation to generation?

• Traditional

• Command

• Market

• Mixed

In traditional economies, bartering is used for trade. What is bartering?

• Trading without money

• Paying for goods and services

• Creating goods to sell for money

• Farming

Government planning groups make the basic economic decisions in this type of economy

• Command

• Market

• Traditional

• Mixed

In this economic system, the government determines which goods and services are to be produced, the prices, and the wage rate

• Command

• Traditional

• Market

• Mixed

The government, not the people, own all the farms and businesses in this type of economy

• Command

• Traditional

• Mixed

• Market

Workers are told what to produce and how much to produce and given a quota to fulfill in this type of economy

• Command

• Market

• Traditional

• Mixed

A benefit of a command economy is that prices are controlled and people know what something will cost

• True

• False

In this type of economy, decisions are driven by changes in prices that occur between buyers and sellers

• Market

• Command

• Traditional

• Mixed