Practice 2nd Six Weeks Test

economic system in which there is medium governmental control; governmental control is held over key industries such as utilities and transportation; private ownership of businesses is only allowed in non-vital industries; allows competition in smaller private sectors; citizens have the right to choose career and place of employment; practices high taxation

• Communism (Strong Command)
• Capitalism (Market)
• Socialism (Moderate Command)
• Traditional Economies
• Economic System

economic systems that occur in less developed countries; allows economic decisions to be ruled by tradition; ranks religious and cultural values as more important than economics; jobs are determined according to ancestors’ jobs

• Communism (Strong Command)
• Capitalism (Market)
• Socialism (Moderate Command)
• Traditional Economies
• Economic System

economic system in which there is strong governmental control; all productive resources are owned and operated by the government; competition is forbidden; and citizens have little or no freedom in selecting a career or workplace; practices heavy taxation

• Communism (Strong Command)
• Capitalism (Market)
• Socialism (Moderate Command)
• Traditional Economies
• Economic System

the way a society produces goods and services and provides and distributes these goods and services to its citizens

• Communism (Strong Command)
• Capitalism (Market)
• Socialism (Moderate Command)
• Traditional Economies
• Economic System

economic system that derives from the principle of individual rights; practices little governmental control; encourages private ownership of business in all sectors; supports competition in all areas; citizens have full freedom to choose career and workplace; practices moderate taxation

• Communism (Strong Command)
• Capitalism (Market)
• Socialism (Moderate Command)
• Traditional Economies
• Economic System

The photograph best reflects the workings of a—

• socialist economy
• free enterprise system
• communist economic system
• traditional economy

Free market economies and capitalist economies are also referred to as—

• factor production units
• factor and product markets
• circular flow models
• free enterprise systems

The practice of voluntary exchange in a free market economy reflects the characteristic of—

• central planning
• specialization
• profit
• economic freedom

In a free market system, the factors of production are owned by—

• central planners
• cartels
• the government
• individuals and private businesses

Which of the following individuals would be most involved in answering the basic economic questions in a centrally planned economy?

• An individual with an idea for a new business
• A wealthy individual seeking to make an investment
• An ordinary citizen making a large purchase at a store
• An official in a government agency