Economic Systems

One benefit of a Traditional Economy is that...

• Everyone has a specific role or job

• Property rights are protected

• Technology advances quickly

• Money can be invested for future profits

One disadvantage of a Traditional Economy is...

• the government controls all property

• very little variety of goods

• the market fluctuates constantly

• bureaucracy slows down trade

Command economies are very good at...

• controlling the factors of production

• generating profit for individuals

• advancing technology

• responding to the wants of the individual

Command economies are very bad at...

• supplying labor to specific areas of economic production

• distributing consumer goods equally to individuals

• allowing entrepreneurs to start new businesses

• redistributing wealth to lower income earners

Market Economies are very good at...

• protecting property rights and generating profits

• technological innovation and scientific advancement

• creating income inequalities and specialized jobs

• all of these are correct

Market economies are very bad at

• ensuring people have all their needs met

• regulating economics activity

• protecting property rights of individuals

• using resources to meet market demand

An economy where demand and price determine what and how much is supplied to consumers

• market

• traditional

• command

An economy where the factors of production are owned and controlled by the government.

• market

• command

• traditional

An economy centered on the tribe or ethnic group

• market

• command

• traditional

Which of the following are aspects of a Traditional economy?

• focused on traditions and customs with advanced technology

• focused on family and customs with some trading and no technology

• focused on generating profits and meeting market demands

• focused on equal distribution of resources to meet the needs of all members