Module 10 Test Review

In this type of economy, things are done the same way they have been done for generations.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

In this type of economy, the government decides how much is produced and who gets what.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Socialism is an example of which type of economy?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

This type of economy is not likely to experience growth because things rarely change.

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What type of economy relies strictly on private ownership of business and decisions are made based upon the wants and needs of the people?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What type of economy does the United States have?

• Traditional economy

• Market economy

• Command economy

• Mixed economy

Which type of economy says that people can own their own business, but the government is going to put rules on what they can and cannot do?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

The ability to start and run your own business is known as _______.

• free enterprise

• free market

• choice

• economics

Why is competition important in a market economy?

• It results in better products at a lower price.

• It can lead to scarcity.

• It creates a lot of similar products.

• It results in less demand.

If supply is low on a product, but a lot of people want to buy it, what can we expect to happen to the price?

• The price will go up.

• The price will go down.

• The price will stay the same.