Exploring Economic Systems

Which of the following is a characteristic of a command economic system?

• Market-based decision making

• Central planning by the government

• Free competition among businesses

• Decisions made by customs and traditions

What is a disadvantage of a traditional economic system?

• Slow economic growth

• High levels of innovation

• Efficient resource allocation

• Overproduction of goods

In a market economic system, who primarily determines the production of goods and services?

• The government

• Consumers and producers

• Tribal leaders

• International corporations

Which country is an example of a mixed economic system?

• North Korea

• Cuba

• United States

• Ancient Egypt

How does a command economic system typically impact individual freedom?

• Increases individual freedom by providing more choices

• Has no impact on individual freedom

• Limits individual freedom by centralizing economic decisions

• Enhances individual freedom by eliminating private property

What is a key feature of a market economic system?

• Government ownership of all resources

• Barter trade

• Supply and demand determine prices

• Production quotas set by the state

Which of the following is an advantage of a traditional economic system?

• High adaptability to change

• Predictability and stability in economic roles

• Encouragement of entrepreneurship

• Diverse product offerings

What is a disadvantage of a market economic system?

• Inequality in wealth distribution

• Lack of innovation

• Inefficiency in resource allocation

• Excessive government intervention

Which of the following is NOT a characteristic of a command economic system?

• Government sets prices for goods and services

• High level of competition among businesses

• State ownership of major industries

• Production targets set by the government

A traditional economic system typically (a)   change and innovation.

• Embraces
• Resists
• Encourages constant technological a
• Has a formal structure for adopting