Economic Systems Quiz

What are the 3 basic economic questions that every economy must answer?

• What goods and services should be produced? How should these goods and services be produced? Who gets these goods and services?

• How should the government regulate the economy? How can individuals make their own economic decisions? What are the economic goals of the nation?

• What are the 6 major goals for economies? What is the role of the government in the economy? How do individuals participate in the economy?

• What is the economic system of the nation? How does the economy prioritize its goals? What are the economic challenges faced by the nation?

Which of the following is a goal of a traditional economy?

• Economic security

• Economic freedom

• Economic efficiency

• Economic stability

What is a command economy?

• An economy where all economic decisions are made by individuals and businesses

• An economy where economic decisions are made by the government

• An economy where economic decisions are made by tradition and customs

• An economy where economic decisions are made by the ruling class

Which of the following best describes a market economy?

• Economic decisions are made by the government

• Economic decisions are made by tradition and customs

• Economic decisions are made by individuals and businesses

• Economic decisions are made by the ruling class

What is a mixed economy?

• An economy where economic decisions are made by the ruling class

• An economy where economic decisions are made by both the government and individuals

• An economy where all economic decisions are made by individuals and businesses

• An economy where economic decisions are made by the government

What is the main priority of a free market economy?

• Economic freedom

• Economic efficiency

• Economic growth

• Economic equity

What is the role of tradition in a traditional economy?

• Tradition has no role in a traditional economy

• Tradition only determines how goods and services are produced

• Tradition only determines what is produced

• Tradition determines what is produced, how it’s made, and who consumes it

What is the role of the government in a command economy?

• The government provides some goods and services in a command economy

• The government only regulates markets in a command economy

• The government makes all economic decisions

• The government has no role in a command economy

What is the characteristic of a mixed economy?

• Both the government and individuals make economic decisions

• Individuals and businesses make all economic decisions

• There is no government regulation in a mixed economy

• The government makes all economic decisions