6.1 GLOBAL ECONOMIC SYSTEM

A country’s economic system is influenced by its political system.

• TRUE

• FALSE

In a market economy system, the prices of products and services are determined by the government.

• TRUE

• FALSE

The features of market economy are free choice, free enterprise and price flexibility.

• TRUE

• FALSE

Command economy is also known as centrally planned economy.

• TRUE

• FALSE

In a command economy, a nation’s land, factories and other economic resources are owned by private individuals and companies.

• TRUE

• FALSE

Mixed economy is an economic system in which land, factories and other economic resources are rather equally split between private and government ownership.

• TRUE

• FALSE

North Korea and Cuba adopt mixed economic system.

• TRUE

• FALSE

In a command economy, government control all economic activities while in in a market economy, government allow freedom to the citizens in managing economic activities.

• TRUE

• FALSE

A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities to achieve social aims.

• TRUE

• FALSE