Europe's Economics Test

Name

1. What are the three questions that every country must answer when developing its economic plan?

• What goods/services will be produced?
• How will goods/services be produced?
• Who will consume the goods/services?
• All of the above

2. The way a country answers these questions determines its

• type of government
• economic system
• location

3. Economic system in which roles and jobs are inherited.

• traditional economy
• command economy
• market economy

4. Economic system in which roles and jobs are determined by the government.

• traditional economy
• command economy
• market economy

5. Economic system in which the citizens dictate what goods and services to sell.

• command economy
• market economy
• traditional economy

6. Trading without using money

• boating
• bases
• bartering

7. In this economic system, the government regulates all the country’s economic decisions: prices of goods, wages of workers, goods to be made, etc.

• traditional
• democracy
• market
• command

8. in this economic system the government has no control over the economy; private citizens answer all economic questions.

• command
• traditional
• market
• mixed

9. Countries with command economies have the same type of government: The government is in control of everything.

• command
• traditional
• market