Economic Systems

What is an economic system?

• A system that involves the production, distribution, and consumption of goods and services in a society.

• A system that prioritizes the distribution of goods and services based on social status.

• A system that focuses on the production of goods and services for personal use.

• A system that involves the exchange of goods and services between individuals.

Which economic system is characterized by private ownership of resources and competition?

• communism

• capitalism

• socialism

• feudalism

In a command economy, who makes the economic decisions?

• individuals

• businesses

• foreign countries

• government or central authority

Which economic system combines elements of both market and command economies?

• planned economy

• mixed economy

• socialist economy

• capitalist economy

What is the main goal of a traditional economy?

• Promote individual freedom and entrepreneurship

• Maximize economic efficiency and productivity

• Maintain and preserve customs and traditions

• Encourage social equality and redistribution of wealth

Which economic system is based on customs, traditions, and beliefs?

• command economy

• market economy

• mixed economy

• traditional economy

What is the role of government in a market economy?

• The role of government in a market economy is to prioritize the interests of businesses over consumers.

• The role of government in a market economy is to provide a legal framework, enforce property rights, regulate market activities, and provide public goods and services.

• The role of government in a market economy is to only provide public goods and services, but not regulate market activities.

• The role of government in a market economy is to control all aspects of the market and eliminate competition.

Which economic system is characterized by central planning and government control?

• command economy

• capitalist economy

• mixed economy

• free market economy

What is the main disadvantage of a command economy?

• Lack of economic growth

• Inefficient allocation of resources

• Lack of individual freedom and choice

• Limited innovation and competition

Which economic system allows for the greatest individual freedom and choice?

• traditional economy

• mixed economy

• market economy

• command economy