Europe Economic Systems Quiz

What are the three types of economic systems?

• feudalism, mercantilism, and barter

• oligarchy, theocracy, and monarchy

• anarchy, dictatorship, and totalitarianism

• market, traditional, and communism

Which economic system is based on supply and demand?

• command economy

• market economy

• mixed economy

• planned economy

In a command economy, who makes all the economic decisions?

• businesses

• consumers

• foreign countries

• government or central authority

Which economic system allows for private ownership of businesses?

• feudalism

• socialism

• market

• communism

What is the main characteristic of a market economy?

• Collective ownership of resources and use of central planning to coordinate economic activity.

• Individual ownership of resources and use of bartering to coordinate economic activity.

• Government ownership of resources and use of regulations to coordinate economic activity.

• Economic decisions based on supply & demand; private ownership

In a mixed economy, who controls the production of goods and services?

• Only the government

• Government and private individuals or businesses

• Only private individuals or businesses

• Consumers

Which economic system answers the three questions through strict government control?

• Market economy

• Command economy

• Mixed economy

• Free economy

What are the three questions that every country must answer when developing its economic plan?

• Why should you produce?

  What should you produce?

  How much to produce?

• How to produce?

  How much to produce?

  What to produce?

• What to produce?

  How to produce?

  For whom to produce?

• Who is going to produce?

  Why are they going to produce?

  How are they going to produce?

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

• mixed economy

• planned economy

• socialist economy

• capitalist economy

Which economic system is based on customs and traditions and use bartering for trade?

• Market

• Traditional

• Mixed

• Command