Economics Chapter 2

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

There are four types of economic systems.  Most economies are _____. 

• Traditional 
• Command 
• Market 
• Mixed

This type of government typically goes with the Command Economy.  

• Democracy
• Republic
• Autocracy
• Communism

The government has little to no role in the production of goods in this type of economy. 

• Traditional 
• Mixed
• Command 
• Market

What do businesses provide for consumers according to the circular flow model?

• goods and services
• only goods
• only services
• taxes

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

There is no need for government in the marketplace

• Laissez Faire
• Capitalism
• Laissez Faire Capitalism
• Socialism

What are some characteristics of a free market economy?

• lack of choice, competition
• individual choice, centrally-planned
• competition, consumer sovereignty
• central ownership of property, profit