Econ CH2

Which of the following states an advantage of a traditional economy?

• Property rights are based on tradition.

• Creativity and original thought are rewarded.

• Everyone knows exactly what their function is.

• There's no bureaucracy to interfere with organizing the economy.

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

• It sustains a high degree of uncertainty.

• It restricts personal freedom.

• It discourages creativity and new ideas for doing things.

• It does not allocate resources as efficiently as other types of economies.

How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?

• Socialist economies tend to collapse when they become too large.

• The marketplaces in a socialist economy are free for anyone to enter.

• Socialist policies offer advantages to the wealthy at the expense of those less well-off.

• Socialist economies tend to offer extensive government services but have high tax rates.

What kind of economy offers uniformity in wages regardless of individual productivity?

• all economies

• traditional economies

• command and socialist economies

• market and free-enterprise economies

__________ economies are the oldest economic systems in place.

• Traditional

• Command

• Market

• Specialization

In a traditional economic system, __________ is inherited.

• jewelry

• livestock

• furniture

• land

Traditional economies rely heavily on __________ to meet the needs of citizens.

• farming and agriculture

• farming and manufacturing

• manufacturing and agriculture

• agriculture and services

In my country my job is the same one that my family has done over the past 200 years.

• Traditional

• Command

• Market

• Mixed

In my country, central planners decide when we should expand old factories and build new ones.

• Traditional

• Command

• Market

• Mixed

In a command economy, who holds power over the economy?

• The people
• The government 
• Beyonce
• The traditions of your ancesetors