Afriica's Economics Quiz

An economic system is a way in which people decide to organize the production, distribution, and consumption of goods and services.

• true
• false

What, how, and for whom to produce are the basic economic questions that every society must answer.

• true
• false

All societies answer the three basic questions in the same way.

• true
• false

Most societies have some type of mixed economy.

• true
• false

In a market economy, only the government decides what goods are produced.

• true
• false

In a command economy, consumer purchasing decides what goods and services are produced.

• true
• false

In a command economy, the government decides how the goods will be produced and distributed.

• true
• false

In a market economy, decisions regarding production and consumption result from the interaction of consumers and producers.

• true
• false

In a traditional economy, custom and habit determine economic decisions.

• true
• false

Why is a system of currency exchange necessary for international trade?

• The people buying goods want to be paid in gold and silver
• To pay for goods purchased from different countries
• All currencies are worthless on the world market
• Most goods must be paid in US dollars