Economic system

What is the term used to define a country in terms of the total makeup of its economic activities?

• Culture

• Society

• Politics

• Economy

What are economic activities related to?

• Consumption of goods & services

• Entertainment

• Education

• Healthcare

Which of the following is NOT one of the three economic questions all countries must answer?

• What should be produced?

• Why should production take place?

• How should production be organized?

• Where should production take place?

In a traditional economy, what do people do to provide for their basic necessities?

• Trade with other countries

• Rely on government assistance

• Buy everything from the market

• Grow most of their own food

Which country is an example of a command economy?

• USA

• China

• Germany

• Japan

What is a key advantage of a command economy?

• Encourages competition

• Promotes creativity & efficiency

• Ensures needs of the whole community are met

• Allows private monopolies to develop

In a free market economy, who determines how resources are allocated?

• Consumers

• Producers

• International organizations

• Government

Which country is NOT a close example of a free market economy?

• Germany

• USA

• Hong Kong

• Singapore

What is a disadvantage of a free market economy?

• Encourages inequalities of wealth

• Promotes fair distribution of resources

• Restricts supplies to keep prices low

• Eliminates competition

What type of economy is a combination of a free market and a controlled economy?

• Command Economy

• Free Market Economy

• Mixed Economy

• Traditional Economy