Economies Review

What are the three questions a country must answer when starting an economy?

• What to produce

• how to produce

• who is going to get the products

• how much we need and dont need

What is a traditional economy?

• A traditional economy is an economic system where customs, traditions, and beliefs shape the goods and services the economy produces.
• A traditional economy is focused on maximizing profits and economic growth.
• A traditional economy is controlled by a single central authority.
• A traditional economy is based on digital currency and online transactions.

Where can we find traditional economies?

• small villages and rural areas in underdeveloe countries

• large cities

• countries with high population

• countries like Russia, the U.S. and China

What is a command economy?

• An economic system in which the government makes all decisions about the production and distribution of goods and services.
• An economic system in which individuals make all decisions about the production and distribution of goods and services.
• An economic system in which the government has no control over the production and distribution of goods and services.
• An economic system in which decisions about production and distribution are made by a combination of government and private individuals.

What countries would most likely have a command economy?

• Countries with a monarchy and a history of democratic decision-making in the economy
• Countries with a completely free market and no government intervention
• Countries with a strong central government (like a dictator or king)

• Countries with a weak central government and a history of state control over the economy

True or False: Citizens have control of making economic decisions in a command economy.

• True
• Partially true
• False
• Only in certain circumstances

What is a market economy?

• A market economy is an economic system in which the prices of goods and services are determined by supply and demand.
• A market economy is an economic system in which the prices of goods and services are determined by a single company.
• A market economy is an economic system in which the prices of goods and services are determined by random chance.
• A market economy is an economic system in which the government controls the prices of goods and services.

Who makes decisions in a market economy?

• Individuals and businesses
• Religious institutions
• Government only
• Non-profit organizations

Why are most economies mixed?

• To eliminate all private ownership
• To promote a completely free market
• To rely solely on government control
• To allow for freedoms for citizens but have some government regulation

What is an economic continuum?

• A type of currency used in international trade
• A line where countries economies fall more market or more command

• A mathematical equation for economic growth
• A type of weather pattern