Economic Systems

In which economic system is the protection of private property rights essential?

• Command

• Traditional

• Market

• Socialism

In which economic system does the government answer all three of the big economic questions? (What to produce? How to produce? For whom to produce?)

• Command

• Socialism

• Market

• Traditional

Based on the passage, East Germany's government planned to transform its economy from: Click the magnifying glass for a better view.

• Traditional to mixed

• Command to traditional

• Market to mixed

• Command to mixed

Which of the following best explains a mixed economy?

• Private ownership of the factors of production and regulation of businesses by government

• Market exchanges answer all three of the big economic questions

• Family customs and traditions determine what and how to produce a good

• Government answers all three of the big economic questions

_____________ are a positive incentive for entrepreneurs to start a business despite the risks.

• Pride

• Wealth

• Profits

• Being an employer

In a __________________ economy, families, clans, or tribes make economic decisions based on generational customs and beliefs.

• Mixed

• Market

• Traditional

• Command

For markets to work efficiently, _________________ need to be well defined and enforced by law, otherwise trade would break down.

• competition

• private property rights

• voluntary exchange

• consumer soverignty

Place where buyers and sellers meet to exchange goods and services for money

• Market
• Factor of production
• Money
• Interdependent

In the products market,

• firms buy goods and services from households
• firms sell goods and services to households
• firms sell resources to households
• firms buy resources from households

Which of the following is a characteristic of a market economy?

• Centralized decision-making

• Government ownership of resources

• Private ownership and voluntary exchange

• Production based on customs