Economic Systems Quiz

What is the main focus of a traditional economy?

• Custom and tradition

• Economic equity

• Economic freedom

• Individual producers and consumers

In a traditional economy, how are economic decisions made?

• By individual producers and consumers

• By government committees

• By powerful rulers

• By custom and tradition

What is the primary goal of a market economy?

• Economic equity

• Economic freedom

• Economic efficiency

• Economic security

In a market economy, who makes the decisions about what to produce?

• Society as a whole

• Individual producers and consumers

• Government committees

• Powerful rulers

What is the main characteristic of a command economy?

• Equal distribution of wealth

• Government control over economic decisions

• Efficient allocation of resources

• Individual freedom to make economic decisions

What was the primary goal of the Soviet Union's command economy?

• Economic freedom and efficiency

• Economic equity and security

• Economic growth and stability

• Economic regulation and protection

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

• To regulate the production of goods and services

• To limit government involvement in economic decisions

• To enforce laws for individual freedom

• To establish institutions for market operation

What is the purpose of government regulation in a mixed economy?

• To maintain economic stability

• To prevent market operation

• To ensure economic equity

• To protect individual freedom

What is the main difference between a market economy and a command economy?

• Efficient allocation of resources

• Individual freedom to make economic decisions

• Government control over economic decisions

• Equal distribution of wealth

What was the main reason for the collapse of the Soviet Union's command economy?

• Inefficient allocation of resources

• Lack of government regulation

• Lack of economic equity and security

• Excessive individual freedom