Who's the Boss?

The way in which a country makes economic decisions is called its economic

• system.

• resources.

• vote.

• market.

Businesses produce goods and services to sell to others by using such items as capital goods, land, and willing workers. These items used in production are examples of economic

• resources.

• markets.

• credit.

• capital.

Which of the following is a statement that is true for all economic systems:

• People are interdependent.

• Government regulates wages.

• Business is competitive.

• Consumers control prices.

Which of the following identifies a basic characteristic of command economic systems:

• The government owns and operates the majority of the means of production and distribution.

• Individuals and businesses own and operate the means of production and distribution.

• The government works with individuals to operate production and distribution processes.

• Consumers determine what will be produced and how it will be distributed.

An entrepreneur wants to open a manufacturing plant, but in his/her country s/he cannot own a business. In what type of economic system does this person live?

• Communist command

• Socialist command

• Traditional

• Private enterprise

Determine which of the following is a true statement about socialist command economies:

• Products are produced based on the government's master plan.

• Wages are based on the availability of workers.

• The government tells people where to work.

• Individuals are not permitted to operate private businesses.

The economic system that allows people to own their own businesses and distribute the products they produce is a __________ economy.

• market

• totalitarian

• communist

• socialist

What type of economic systems are found only in undeveloped countries?

• Traditional

• Socialism

• Market

• Communism

Which of the following is an economic question that must be answered by all economic systems:

• How will products be allocated?

• How can competition be increased?

• How can government control be limited?

• How can the profit motive be encouraged?

Which of the following countries is correctly paired with its economic system:

• Cuba – Communist command

• China – Traditional

• Great Britain – Market

• Japan – Socialist