Types of Economic Systems

Which of the basic economic systems allow government to control most aspects of the economy?

• mixed

• command

• market

• traditional

What would result if everyone became self-sufficient?

• a command economy would form

• government would take over

• specialization would increase

• there would be no need for markets to purchase goods and services

What assumption can we make about people living in command economies

• they are happy with their government

• they have all their wants and needs met

• they are experiencing shortages

• they are all happy with their jobs

What influence does the government have in a market economy?

• they have limited control of the aspects of the economy

• they have no control of any aspects of the economy

• they are forced to keep out of economic affairs

• both B and C

What is the best definition of a mixed economy?

• the least popular type of economic system

• an economy that has all three of the other economic systems present

• an economic system that has elements of traditional, command, and/or market economies

• none of the above

What is a characteristic of a market economy?

• markets

• private property

• competition

• all of the above

The main concern of a traditional economic system is …..

• to be the most productive society globally

• to make private property and competition laws

• to support the wants and needs of the individual consumer

• to support the basic needs of the society as a whole

Once an economic system is established, what can or cannot be done?

• the basic economic questions can be answered

• resources can no longer be produced

• government can take over the society’s economy

• laissez faire economics can begin

What are some negative effects of the traditional economy?

• they are always choosing new ideas and technologies

• they are inefficient in providing goods and services to the society

• they assign jobs based on test scores

• all of the above

What is a common phrase used in capitalism?

• freedom of the market

• there’s nothing better than money

• survival of the fittest

• taxation without representation