Unit 6 Summative - Economies in Europe

What are the 3 economic questions that every country must answer?

• a. what to produce, what to sell, how to sell
• b. for whom to produce, how to produce, what natural resources is used
• c. what to produce, how to produce, for whom to produce
• d. what capital goods is used, what business name is created, what goods/services sold

Traditional economic systems rely on ____.

• a. currency (money)
• b. supply and demand
• c. bartering
• d. government control

In a _____ economy, the government regulates all the country's economic decisions.

• a. traditional
• b. market
• c. command
• d. mixed

In a _____ economy, goods and services produced are determined by what consumers want to buy and what produces want to sell.

• a. traditional
• b. market
• c. command
• d. mixed

Mixed economies are a combination of _____ and ____ economy systems.

• a. traditional & command
• b. command & market
• c. market & traditional

Most European countries have _____ economies.

• a. traditional
• b. market
• c. command
• d. mixed

The United Kingdom's mixed economy is very close to a pure ____ economy.

• a. command
• b. market
• c. traditional

The United Kingdom is one of the world's leading _____.

• a. industrial powers
• b. banking powers
• c. fishing & shipping powers
• d. oil powers

Even though Germany's mixed economy has many market elements, the government still plays a significant role in the country's economy.

• a. True
• b. False

Russia's economy continues to struggle as it moves from being a command economy to a mixed economy.

• a. True
• b. False