Economic Systems Test Review

The way a society produces goods and services and distributes them to its citizens is called a(n):

• Economic System

• Socialist System

• Capitalist System

• Mixed System

What are the four basic types of economic systems?

The type of economic system based on community and family ideals like the Aboriginies or Amish.

The type of economic system where businesses and consumers control everything with no government intervention.

The type of economy where the government controls all aspects of the economy like North Korea.

The type of economic system where the government and the people control the aspects of the economy like the United States.

What is the basic question(s) all economic systems try to answer?

• What to produce?

• How to produce it?

• For whom to produce?

• All of the above

The term that indicates ownership, either by individuals or by a business is:

• Command Economy

• Private Property

• Competition

• Market Economy

What are the limitations of a traditional economy?

• Lack of innovation

• Lower incomes

• Lack of occupational choice

• All of the above

A woman owns a successful natural beauty product company. As the business owner, she gets to decide what products her business wants to make based on supply and demand. She gets to make all of the decisions about her company without any government involvement. What type of economic system would this woman likely live in?

• A market economy

• A command economy

• A mixed economy

• A traditional economy