Types of Economies Quiz

Which type of economy relies on customs, traditions, and rituals to determine economic activities?

• command economy

• market economy

• traditional economy

• mixed economy

In a traditional economy, what is the main factor that determines how resources are allocated?

• customs and traditions

• government regulations

• market demand

• individual preferences

Which type of economy is characterized by government control and central planning?

• market economy

• capitalist economy

• mixed economy

• command economy

In a command economy, who makes the decisions regarding resource allocation?

• businesses

• government or central authority

• consumers

• individuals

Which type of economy is based on supply and demand, with little to no government intervention?

• mixed economy

• command economy

• market economy

• planned economy

In a market economy, who determines the prices of goods and services?

• Consumers

• Producers

• Supply and demand

• Government

What is the term used to describe a general increase in prices and fall in the purchasing value of money?

• inflation

• stagflation

• recession

• deflation

What is the opposite of inflation?

• stagflation

• inflation

• deflation

• recession

What is the term used to describe a significant decline in economic activity?

• growth

• inflation

• recession

• boom

During a recession, what happens to unemployment rates?

• decrease

• fluctuate

• increase

• stay the same