SS6E1 STUDY GUIDE

What is true of private property protections in Cuba?

• Because Cuba has a market economy, private property protections are very weak.

• Because Cuba has a market economy, private property protections are very strong.

• Because Cuba has a command economy, private property protections are very weak.

• Because Cuba has a command economy, private property protections are very strong.

How do mixed economies answer the three basic economic questions?

• The past will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The past will guide all decisions.

• The government will decide what goods to produce, how to produce them, and for which consumers to produce them. The government will make all decisions.

• Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. All economic decisions will be guided by supply and demand.

• .Supply and demand will guide producers in what goods to produce, how to produce them, and for which consumers to produce them. The government will intervene to ensure fairness and productivity.

Hunting and gathering, subsistence agriculture, and the barter system are characteristics of which type of economy?

• a traditional economy

• a market economy

• a command economy

• a mixed economy

What is one key feature of the Cuban economy?

• high levels of entrepreneurial activity

• government ownership of major industries

• distribution of resources based on supply and demand

• lack of government intervention in the national economy

How are Brazil and Cuba similar?

• Neither country imposes taxes on its citizens.

• Both countries' governments control some industries.

• Neither country imposes any barriers to trade.

• Both countries have strong private property protections.Read the text and answer the question.

In Country X, the factors of production are all publicly owned and controlled by the government. The basic economic questions of what to produce, how to do so, and how to distribute goods are determined by Country X's government and not by market forces. Because they are set by central planners, prices do not signal to producers whether to increase or decrease production.

What kind of economy does Country X have?

• The government's role in setting the prices of goods shows that Country X has a market economy.

• The government's ownership of the factors of production shows that Country X has a market economy.

• The government's encouragement of entrepreneurship shows that Country X has a command economy.

• The government's control of the factors of production shows that Country X has a command economy.

Some small communities in the remote parts of the Amazon Rainforest hunt and farm in the same ways their ancestors did hundreds of years ago. They barter among themselves or with other small communities for the things they cannot make themselves. 

What type of economy is this?

• mixed economy

• traditional economy

• command economy

• market economy

Societies have created different economic systems to address the three basic economic questions. In a traditional economy, traditions of the past determine who works which jobs and how the work is done. In a market economy, private companies produce the products they want in the way they think best; they make what they think consumers will buy. No one tells companies what to make or consumers what to buy. In a command economy, individuals have little say in what goods are produced, how they are produced, and who gets them. A mixed economy combines elements of market and command economies. Many economic decisions are made by private individuals, but the government also decides how best to use some resources and regulates some business decisions.

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the abundance of natural resources in the economy

• the amount of government involvement in the economy

Cuba is a command economy

Brazil is a mixed economy

Mexico is closer to market

If x=command, y=mixed z=market, in what order would list the countries of Cuba, Brail and Mexico on a economic continuum beginning with command on the left mixed in the middle and market on the right.

• X is Cuba, Y is Brazil, and Z is Mexico.

• X is Cuba, Y is Mexico, and Z is Brazil.

• X is Brazil, Y is Cuba, and Z is Mexico

• X is Brazil, Y is Mexico, and Z is Cuba.

In Brazil, entrepreneurs who identify unmet consumer demand are free to start business to meet that demand in the markets for most goods. Some markets, such as the oil and energy markets, are controlled by the government and private businesses are not allowed to compete. Private businesses have to apply to the government for licenses and follow the government's rules in other markets.

Based on this information, what type of economy does Brazil have?

• Brazil has a pure market economy.

• Brazil has a mixed economy with command and market elements.

• Brazil has a pure command economy

• Brazil has a traditional economy with command and market elements