Chapter 2 Test Review

In what kind of economy does the government own some of the factors of production?

• communist

• market

• socialist

• traditional

What command economy went from an agricultural society to an industrial nation in a few decades?

• Chile

• Argentina

• the former Soviet Union

• None of the above

In what type of economy does the government decide whether houses or apartments will be built?

• traditional

• command

• mixed

• market

This country is high socialized and had really high taxes

• the United States

• Sweden

• Mexico

• Singapore

Which of the following economic system has little to no creativity due to the fact you do what your parents do?

• Traditional

• Command

• Market

• Communism

Which of these statements describes a disadvantage of a traditional economy?

• Everyone knows his or her role

• New ways of doing things are encouraged

• New ways of doing things are discouraged

• Difficult economic decisions are made by the state.

Which of these economic systems have the least in common?

• market economy and capitalism

• command economy and socialism

• command economy and capitalism

• free-enterprise economy and market economy

Which of these statements is descriptive of a market economy?

• Most media is state-owned and operated.

• The government determines what is produced and by whom.

• Major economic decisions are made for individuals, not by them.

• Major economic decisions are made by individuals, not for them.

In which of these systems is the government most likely to provide people with goods and services they could not otherwise afford?

• a market economy

• a socialist economy

• a traditional economy

• a free-enterprise economy

Which of these helps explain why mixed economies develop?

• People become unhappy with aspects of their current economy.

• People are seldom exposed to the ideas and technologies of other cultures.

• Government control of an economy tends to make a nation more prosperous.

• Government control of an economy leads to a diversity of economic approaches.