Economic Systems Exam Review

Who or what answers the basic economic questions in a mixed economy?

• Individuals and Businesses

• Government

• Custom

• Individuals, Businesses, and Government

Who or what answers the basic economic questions in a command economy?

• Individuals and Businesses

• Government

• Custom

• Individuals, Businesses, and Government

Who or what answers the basic economic questions in a market economy?

• Individuals and Businesses

• Government

• Custom

• Individuals, Businesses, and Government

Which Economic Goal does NOT belong to a MARKET economy?

• Efficiency

• Full Employment

• Growth

• Sustainability

Which Economic Goal does NOT belong to a COMMAND economy?

• Equity

• Full Employment

• Security

• Sustainability

This is when produces make what consumers want to buy.

• competition

• profit motive

• consumer sovereignty

• private ownership

This is when the government enforces a rule or law. It typically can cause higher prices.

• deregulation

• redistributing income

• providing public goods

• regulation

This is when the government taxes its citizens income and uses this tax money to fund various gov't programs.

• deregulation

• redistributing income

• providing public goods

• regulation

This role is characterized by shared consumption + non exclusion (everyone can use it, no one can be left out).

• deregulation

• redistributing income

• providing public goods

• regulation

Which economy has the HIGHEST levels of profit motive, private ownership, and competition?

• Market Economy

• Command Economy

• Tradition Economy

• Mixed Economy