Economic Systems Quiz Review

The government makes most economic decisions.

• command economy

• market economy

• traditional economy

Businesses are privately owned by individuals.

• command economy

• market economy

• traditional economy

People living in this type of economy often lack technology.

• command economy

• market economy

• traditional economy

Bartering is a common practice in this economic system.

• command economy

• market economy

• traditional economy

There is little incentive to produce quality goods in this economy because everyone generally makes the same amount of money regardless of quality.

• command economy

• market economy

• traditional economy

There are often huge gaps between the poor and the wealthy.

• command economy

• market economy

• traditional economy

Individuals are free to make their own economic decisions.

• command economy

• market economy

• traditional economy

Economic activities are dictated by culture (the way things have always been).

• command economy

• market economy

• traditional economy

Entrepreneurs are common in this economic system, as a lucrative profit is the incentive to produce.

• command economy

• market economy

• traditional economy

Cuba has this type of economic system, where people earn so little that they are forced to work illegally to make ends meet.

• command economy

• market economy

• traditional economy