Europe Economics Unit Study Guide

· Decentralized decision making.
· Adjusts to changes in the market place.
· Producers and consumers have control of the economy.

All of these are characteristics of a ___ economy.

• command

• market

• socialist

• traditional

In a command economy, how are the prices of goods and services determined?

• 
  business owners

• 
  the central government

• 
  market forces of supply and demand

• 
  independent agencies and independent regulators

Freedom to own the factors of production, subsidized transportation services, and involuntary spending and investments are all examples of

• mixed economies.

• market economies.

• command economies.

• traditional economies.

Communism and socialism are usually found in what type of economic system?

• command

• traditional

• pure market

• mixed market

In a traditional economy, the decision to make (or not make) certain products is decided MOSTLY by

• custom.

• entrepreneurs.

• government.

• producers.

As of 2011 the economies of the United Kingdom, Germany, and Russia could be classified as MAINLY

• command.

• communist.

• market.

• traditional.

At the start of the 21st century in Britain, Germany, and Russia, the basic economic questions of what, how, and for whom to produce were answered by

• industrial labor unions

• producers and consumers.

• 
  central planning committees.

• international planning organizations.

The United Kingdom, Germany, and Russia all collect taxes from their citizens. Collecting taxes from citizens is an element of any

• market economy.

• command economy.

• capitalist economy.

• traditional economy.

Which statement BEST describes the economy of the United Kingdom (U.K.)?

• The U.K. must import all of its oil, coal, and natural gas.

• The U.K. must import many raw materials used in manufacturing.

• The U.S. is the world's leader in exporting of coal and natural gas.

• The U.K.'s geography provides it with all of the natural resources it needs.

What is one of the primary reasons for the collapse of Socialist/Communist economic systems, particularly in the Soviet Union?

• 
  

• Government failure to distribute resources effectively.

• The inability of the people to work as a group.

• Lack of government oversight.

• Profits got too high.