Economic Systems Review- Lat Am

1. Which is not one of the 3 economic questions EVERY country must answer?

• What to produce?

• For whom to produce?

• How to produce?

• When to produce?

2. Who answers the 3 economic questions in a command economic system?

• Businesses

• Citizens

• The government

• Tribal leaders

3. Which economic system is based on customs and habits of the past?

• Traditional

• Command

• Market

• Mixed

4. Which economic system focuses on supply and demand?

• Traditional

• Command

• Market

• Mixed

5. What is supply and demand?

• a tax on imported goods

• bartering for goods and services

• what the people want to buy determines what people produce

• a limit on imports

6. What type of economic system do most democratic countries have?

• Mixed

• Traditional

• Command

• Market

7. What is Brazil doing to move further away from a command economy and closer to a market economy in recent years?

• Giving the government all of the power to make economic choices

• Collecting higher taxes

• Giving businesses and citizens more freedom

8. _____________ has a mixed-market economy, and oil is their main source of income.

• Brazil

• Cuba

• Mexico

9. Imposing high taxes on citizens is an example of what economic system?

• Market

• Command

• Mixed

• Traditional

10. Why is a pure market economy not ideal?

• There is too much government control.

• The taxes are too high.

• Customs and habits of the past do not allow for growth.

• It would be unsafe because there are no regulations on food or medicine.