Economics & Types of Government

In a free enterprise/capitalistic economy, ___________ and producers decide what goods are produced, consumed and distributed.

• The government

• CEO's

• Producers

• Consumers

The headline below displays elements of what type of economy?

• Communist

• Command

• Mixed

• Free Enterprise

Identify the three major types of economies practiced around the world (in theory). Use the most current names.

• Free Market, Capitalism, Free Enterprise

• Mixed, Socialist, Communist

• Free Market, Mixed Economy, Command Economy

• Producers, Consumers, Suppliers

What type of economy is the basis for the one found in the United States?

• Socialist

• Command

• Mixed

• Free Market/Free Enterprise

A key principle of the economic theory of communism is

(In communism the government decides what will be bought, sold, and produced) (EXTREME government intervention)

• Privatization of business to promote growth

• Competition between producers for a profit

• Government ownership of the factors of production and distribution

• Following the traditions of ancestors

A purely free market/free enterprise economic system

• Does not exist among developed countries, as there is some level of government involvement in market rules/regulations

• Will consistently produce the highest quality, lowest priced goods and services

• Allows for the lowest level of choice amongst consumers

• Involves market choices that are entirely between consumers, producers, and the government

Cuba is a communist one-party state, which type of economy would you expect them to have?

• Free Market - because goods and services are free

• Mixed - because the people and the government decide what is produced and consumed

• Command - because the government completely controls what goods and services are produced and consumed

Why is socialism referenced as a  "Mixed Economy"

• Because it combines both Free Enterprise and Command economic systems

• Because historians just did not like the name anymore

• Because there is no universally accepted definition of socialism

• Because the government wanted to make sure their production of goods and services were for people of all backgrounds

Socialism still allows for the private ownership of some stuff (private property)

• True

• False

In Iran, the Ayatollah Khomeini is the “Supreme Leader”, the highest ranking religious and political leader in the country.  Iran is an example of which type of government?

• Totalitarian State

• Theocracy

• Democracy

• Dictatorship