Economic Systems Review

Economic system in which basic economic activity stems from ritual, habit, or custom

• Traditional Economy

• Mixed Economy

• Socialism

• Utility

An organized way of providing for the wants and needs of a society.

• Mixed Economy

• Socialism

• Economic System

• Capitalism

Economic and political system in which the government owns and controls some factors of production.

• Utility

• Market Economy

• Command Economy

• Socialism

Capacity of a good or service to be useful and give satisfaction.

• Mixed economy

• Socialism

• Economy

• Utility

Which of the following is a disadvantage of a market economy?

• Market is weak.

• It limits freedom for producers and consumers

• It does not provide for everyone

• It limits private property rights

The main advantage of a command economy is that this system

• gives people the incentive to produce the best products possible

•  deals with minor day-to-day problems effectively

• can change direction drastically

• does not require a huge decision-making bureaucracy

In which economic system is the economy COMPLETELY controlled by the government?

• capitalism

• socialism

• communism

• anarchism

In which economic system do private individuals control the economy?

• capitalism

• socialism

• communism

• anarchism

Minimum wage laws and product-labeling laws would likely be found in which form of capitalism?

• laissez-faire capitalism

• mixed economy

• anarcho-capitalism

• feudalism

In this form of capitalism, the government adopts a "hands-off" policy toward the economy.

• laissez-faire capitalism

• mixed economy

• anarcho-capitalism

• feudalism