Unit 5 Test Review: Economics

Which economic system is based on customs and beliefs, people will do the same work as their parents, and the exchange of goods is through bartering (no money)?

• Traditional

• Command

• Free Market

• Socialism

Which economic system does the government make all economic decisions and owns all of the means of production - it is sometimes called communism?

• Traditional

• Command

• Market

• Socialism

In which economic system do both free market and command combine?

• Traditional

• Command

• Market

• Socialism

Which economic system is it when people own all the means of production with no government involvement?

• Traditional

• Command

• Free Market

• Socialism

Which of the following BEST describes a free market system?

• The government provides services, such as telephones and television.

• A person can start any legal business and charge any price.

• The government provides food and housing to all workers.

• Businesses are owned by the government.

In my country, central planners decide economic activities every 5 years like when to expand old factories or create new ones. Which economic system is this?

• Traditional

• Command

• Free Market

• Socialism

What are some economic activities of a traditional system?

• Customs like hunting, fishing, and farming

• 5-year plans, government owns all factors of production

• Law of supply and demand; variety of businesses and products; private ownership

• Mix ownership of the mean of production; government controls large businesses and people own small businesses

The country of North Korea has a dictator that makes almost all of the economic decisions. What type of economy is this?

• Traditional

• Free Market

• Command

• Socialism

I am a farmer in Africa, and have always traded for my goods.  I have a _____ economy. 

• Traditional 
• Command 
• Free Market

• Socialism

Which economic system, created by Karl Marx, included the idea of a classless society?

• Traditional 
• Free Market
• Socialism

• Command