Ch. 2 "Economic Systems"

The purpose of government in a command economy?

• ensure the availability of consumer products

• encourage entrepreneurs

• make major economic decisions

• promote economic freedom

An economic system in which individuals and businesses make decisions about what to produce.

• Market economy

• Mixed economy

• Communism

• Command economy

Which provides the greatest incentive for entrepreneurs to take risks?

• prices
• inflation
• profits
• interest

With which term is a command economic system MOST closely associated?

• Entrepreneurship

• Economic Freedom

• Perfect competition

• Governmental regulation

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

• Market
• Mixed
• Traditional
• command

A person who comes up with a product or service, and finds the money and time to produce this new product.

• Entrepreneur
• Incentive
• Specialization
• Barter

Sam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather.

• Free Market
• Traditional
• Mixed
• Command

Who or what answers the basic economic questions in a command economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

_______________ would be an example of a modern mixed economy. (select all that apply!)

• Japan

• The United States

• North Korea

• France

The closest thing to a planned/command economy today exists in:

• Russia

• Czechoslovakia

• North Korea

• South Korea