Chapter 2 Practice Quiz - Economic Systems

What type of economic system allows the government to decide what to produce, how to produce and for whom to produce?

• Market
• Mixed
• Command
• Traditional

What type of economic system is based on customs and beliefs?

• Market
• Mixed
• Traditional
• command

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

In the economy of the Bushmen of the Kalahari Desert the people follow the examples of their ancestors.  This is what kind of economy? 

• Traditional 
• Market 
• Command 
• Centrally planned 

The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?

• Traditional 
• Market 
• Command 
• Centrally Planned 

What are the 3 economic questions?

• What to produce? How To Produce? For whom to produce?
• Who to produce? Why you produce? Like to produce?
• Why to produce? Tell who to produce? Things to produce?
• What to produce? How to produce? When to produce?

When someone or a business chooses to specialize or produce certain items.

• Entrepreneur
• Economics
• Voluntary Exchange
• Specialization

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

The former Soviet Union was an example of a communist country where

• individual freedom was allowed
• free enterprise was encouraged
• consumers had many choices
• most economic and political power was controlled by the government

The circular flow model of a mixed economy shows

• only how firms and households interact
• the physical flow and monetary flow between households and firms in both the product and factor markets
• how government interacts with households and firms in the product and factor markets
• how taxes and profits are related