Economic Systems

A command economy is when the government is in control.

• True
• False

What is an economic system where only the government makes the economic decisions?

• traditional economy

• free enterprise

• mixed economy

• command economy

What type of economy do most countries in the world have?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

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

• Traditional

• Market

• Command

• Centrally Planned

The government has little to no role in the production of goods in this type of economy.

• Traditional

• Mixed

• Command

• Market

Businesses have freedom to produce whatever they think consumers will buy

• Market

• Command

• Mixed

• Traditional

Each society must determine how to best use its_______

• People
• Land
• Natural Resources
• All of the above

A garbage truck driver is an example of which Factor of Production?

• labor
• land
• entrepreneurship
• capital

The term, "land" means:

• The natural resources used to produce goods or services.
• Work the people do to produce goods and services.
• Goods not created for their own use, but to make other goods/services.
• Person who organizes the factors of production to produce goods/services; business owners.

Which activity is an example of investing in physical capital by a company?

• constructing a new factory
• throwing away old delivery trucks
• giving workers more time off to rest
• training workers to do their jobs better