Chapter 2 Types of Economies

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

A command economy is when the government is in control.

• True
• False

Which of the following is an economic system in which economic decisions are made according to social roles & culture?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

In which type of society would we most likely find a traditional economic system?

• a major city
• an established country
• rural and under-developed territory
• all of the above

This type of government typically goes with the Command Economy.  

• Democracy
• Republic
• Autocracy
• Communism

In this type of economy, the government places control on businesses, but the individual decides what to make. 

• Mixed
• Market
• Command 
• Traditional

In the circular flow model, the product market describes _____.

• stores that sell goods and services to households
• the government paying for public goods
• households selling their labor to businesses
• households receive income from businesses

Which type of economy has private property, consumer sovereignty, individual choice, profit, and no government involvement?

• traditional economy
• command economy
• free market economy
• mixed economy

What type of economy has a private and public sector, the characteristics of a free market, and is the most common economic system today?

• Free Market Economy
• Mixed Economy
• Command Economy
• Traditional Economy

Which type of economic system bases its decisions on custom and historical precedent?

• Free Market Economy
• Mixed Economy
• Command Economy
• Traditional Economy