SS7E7 a,b,c Southern & Eastern Asia Economic Systems

Why do most countries fall somewhere between a market and a command economy?

• Some government control has never been successful.

• Government control always makes a market economy more profitable.

• Most consumers prefer government control to free market.

• Most countries have found they need a mix of free market and government control to be successful.

In a command economy, economic decisions are made by the

• consumers.

• market.

• government.

• producers.

What type of economy does North Korea have?

• Market

• Command

• Market

• Mixed

Most democratic nations have _______ economies.

• mixed

• market.

• traditional.

• command.

Poor decisions made about how to organize farming in North Korea have resulted in many years of

• drought

• labor strikes

• starvation

• protests

Which has been a constant problem for India's economy?

• a GDP that has not grown in many years

• lack of a strong middle class

• expense of maintaining a large military

• overpopulation and poverty found throughout the country

Every country must answer these basic questions when developing its own economic plan EXCEPT

• what goods or services will be produced?

• how will goods or service be produced?

• will this make our country rich?

• Who will consume the goods or service?

How does a traditional economy exchange goods?

• By stealing

• By the government telling the people what to exchange

• By paying for goods

• By bartering- trading without using money

If you were opening a shoe store where you set the prices based on buyer and seller interaction you would be practicing which type of economy?

• Command

• Traditional

• Market

• Democratic

The economies of China, India, and Japan can all best be described as:

• traditional

• market

• command

• mixed