Econ Unit 3 Review: Economic Systems and Capitalism

Which economic system establishes roles based on the customs of ancestors?

• Traditional

• Command

• Market

• Mixed

Which economic system promotes competition that results in quality goods at lower prices?

• Communism

• Capitalism

• Socialism

Since there are few "pure systems", what economic system do most countries, including the United States, use?

• Traditional

• Command

• Market

• Mixed

Which economic system allows Supply/Demand forces from private citizens to answer the three basic economic questions?

• Traditional Economy

• Command Economy

• Market Economy

Which of the following are ADVANTAGES of a Market Economy? (Choose Two)

• Sustainable Way of Life

• Variety of Quality Goods/Services

• Basic Needs Provided by the Government

• Individual Freedom and Satisfaction

Which economic system has the government make all important economic decisions?

• Traditional

• Command

• Market

• Mixed

What are the advantages of a Traditional Economy? (Choose all that apply)

• Everyone knows their role.

• Integration of modern technology.

• A high degree of uncertainty.

• Sustainable way of life.

Which country below is the best example of a command economy?

• The United States

• Japan

• North Korea

• France

Which of the following items are traditional problems in a command economy?

• Loss of individual freedom.

• Low-quality goods and services.

• No incentive to work hard.

• Make changes w/o government interference.

There are five goals in Free-Market Capitalism. Which is described below: People own and control their own possessions. They have an incentive to work, save, & invest.

• Economic Freedom

• Voluntary Exchange

• Private Property

• Profit Motive

• Competition