Ch 2 Economic Systems

What type of economy is the United States?

• mixed

• command

• market

• socialist

When it comes down to it, all economies are really..

• command

• market

• traditional

• mixed

In a "Command Economy" who controls the factors of production (all economic decisions)?

• the people (individuals)

• elected financial representatives

• the government

• all decisions are voted upon

Which economic system bases their economic decisions on what their people have always done in the past?

• mixed

• traditional

• command

• market

In Democratic Socialism, the similarities to capitalism would be..

• no ownership of private property

• gov't control of all factors of production

• individuals can own businesses and property

• all decisions are made by the ruler

A _____________ economy is completely determined and controlled by a central planning authority or the government

• Traditional

• Planned/Command

• Mixed

• Free Market

A ______________ economy is guided primarily by custom, habit, and ritual.

• Traditional

• Planned/command

• Mixed

• Free Market

A _____________ economy is driven entirely by voluntary exchange in markets

• Traditional

• Planned/Command

• Mixed

• Free Market

A _________ economy is a market-based system in which the government is involved to some extent.

• Traditional

• Planned/command

• Mixed

• Free Market

A 100% free market without government involvement doesn't exist in the modern world.

• True

• False