Economic Systems Test

The most common economic system in the world

• closed economy

• command economy

• mixed market economy

Which statement best describes a command economy?

• Government intervention in economic choices is strictly forbidden.

  
  

• The government determines economic choices and makes most decisions.

  
  
  

• The decisions made by producers and consumers drive all economic choices.

  
  

Which statement best describes a mixed market economy?

• The government determines economic choices and makes most decisions.

• The decisions made by producers and consumers drive all economic choices.

  
  

• Producers and consumers make some economic choices while the government makes others.

n this economy, community members typically use simple tools to plant and harvest crops. Food supplies are supplemented by hunting animals and gathering plant materials. Members trade with each other to obtain needed goods, as few people hold currency. Little economic growth occurs.

What type of economy is being described?

• a traditional economy

• a free market economy

• mixed-market economy

A command economy tends to exist under a

• democratic government that provides little regulation.

• representative government that provides no regulation.

• communist government that provides a lot of regulation.

  
  

A mixed market economy tends to exist under a

• communist government that provides little regulation.

  
  

• democratic government that provides some regulation.

  
  

• representative government that provides no regulation.

  
  

Which nation has a communist command economy?

• North Korea

  
  

• Norway

  
  

• United States

The citizens of the United States live and work in a

• closed economy.

  
  

• command economy.

  
  

• mixed market economy.

  
  

One of the three main questions of economics addresses who should

•  produce goods and services.

  
  

• market goods and services.

  
  

• receive goods and services.

  
  

.

One of the main questions of economics involves deciding upon the method for

• distributing goods and services.

  
  

• creating goods and services.

  
  

• pricing goods and services.