8-1 Common Assessment Review

In which type of economic system are resources distributed mainly through families?

• traditional economy

• market economy

• command economy

• mixed economy

Answer explanation

Traditional economies are based around family groups or small communities that take care of their own wants and needs.

A _____ is also referred to as capitalism.

• traditional economy

• market economy

• command economy

• mixed economy

Answer explanation

Capitalism, Free Market Economy, and Free Enterprise System are all terms that refer to a Market Economy

In which type of economy are the production and distribution of resources controlled by the government?

• traditional economy

• market economy

• command economy

• mixed economy

Answer explanation

In a Command Economy, the government controls all the factors of production, including how resources are used.

What type of economic system does the United States have?

• traditional economy

• market economy

• command economy

• mixed economy

Answer explanation

The United States has a mixed economy, which combines elements of both market and command economies, allowing for private enterprise and government intervention in the economy.

People trade their crops in village markets to get the items that they need. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

The correct choice is Traditional Economy because trading crops in village markets reflects the barter system and customs passed down through generations.

Buyers and sellers make all the financial decisions. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

In a Market Economy, buyers and sellers have the freedom to make financial decisions based on supply and demand, without government intervention.

Supply and demand solely determine how much an item costs. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

Supply and demand determining item costs indicate a Market Economy where prices are set by the interactions of buyers and sellers.

The food supply is divided so that everyone gets the same amount. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

In a Command Economy, the government controls the distribution of resources, ensuring everyone gets the same amount, unlike in other economic systems where distribution is based on market forces or tradition.

Citizens receive a free college education, but make their own career and business decisions. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

This is a Mixed Economy because citizens receive a free college education, indicating government intervention, but they make their own career and business decisions, showing elements of a market economy.

Workers are free to work wherever they choose. Which type of economic system is this?

• Traditional Economy

• Market Economy

• Command Economy

• Mixed Economy

Answer explanation

Workers being free to work wherever they choose indicates a Mixed Economy or Market Economy where individuals have the freedom to make economic decisions.