Economic Systems and Decision Making Glossary Quiz

Which one describes a command economy?

• n economic and political system in which all property is collectively owned and controlled by the state

• an economic system in which individuals have the freedom to make economic choices, including opening businesses and participating in buying and selling goods and services.

• an economic system in which economic activities are based on ritual, habit, or custom

• an economic system in which a central authority, such as the government, makes the major economic decisions

What is communism?

• An economic and political system in which all property is collectively owned and controlled by the state; labor is organized for the common advantage of the community and resources are allocated based on the needs of individuals

• an economic system in which a central authority, such as the government, makes the major economic decisions.

• the organized ways in which societies allocate resources and make decisions about the production, distribution, and consumption of goods and services

• an economic and political system in which the government owns and controls some factors of production. It aims to provide for the basic needs of its people, such as education and healthcare, and promotes social equality

_________________________ is/are the organized ways in which societies allocate resources and make decisions about the production, distribution, and consumption of goods and services.

• Communism

• Financial decisions

• Economic systems

• Traditional economy

Describe a Market Economy.

• an economic system in which a central authority, such as the government, makes the major economic decisions

• an economic system in which individuals have the freedom to make economic choices, including opening businesses and participating in buying and selling goods and services

• economic systems that combine elements of both market economies and command economies

• the way a society organizes the production, distribution, and consumption of goods and services, it includes the rules, institutions, and mechanisms that govern economic activity

Which description applies to socialism?

• an economic system in which a central authority, such as the government, makes the major economic decisions

• an economic and political system in which all property is collectively owned and controlled by the state

• an economic system in which private individuals or businesses own and control the means of production and operate for profit

• an economic and political system in which the government owns and controls some factors of production. It aims to provide for the basic needs of its people, such as education and healthcare, and promotes social equality

What is a Traditional Economy?

• an economic and political system in which the government owns and controls some factors of production

• an economic system in which economic activities are based on ritual, habit, or custom

• an economic system in which private individuals or businesses own and control the means of production and operate for profit

• refers to the ability of an economic system to allocate resources in a way that maximizes the production of goods and services

_________________ is an economic system in which private individuals or businesses own and control the means of production and operate for profit

• Competition

• Mixed Economies

• Capitalism

• Communism

_________________ refers to the ability of an economic system to allocate resources in a way that maximizes the production of goods and services.

• Economic efficiency

• Financial decisions

• Economic systems

• profit motive

Which describes economic efficiency?

• the driving force that encourages individuals and businesses to seek financial gain and improve their material well-being; individuals and businesses are motivated to produce goods and services that are in demand, innovate and improve efficiency

• refers to the act of buyers and sellers freely and willingly engaging in market transactions

• refers to the ability of an economic system to allocate resources in a way that maximizes the production of goods and services

• organized ways in which societies allocate resources and make decisions about the production, distribution, and consumption of goods and services

With ____________________, individuals and businesses have the ability to make economic decisions without interference from the government or other external forces.

• economic efficiency

• Communism

• Socialism

• economic freedom