Economic Systems

What is the primary function of an economic system?

• To provide social services to the community

• To organize a society to allocate limited resources in the production and distribution of products

• To manage the country's imports and exports

• To oversee educational programs

Which of the following is NOT one of the three basic economic questions?

• What will be produced?

• How will it be produced?

• Who gets what is produced?

• Why is it produced?

What is a mixed economy?

• An economy where the government controls all economic activities.

• An economy that operates solely on market principles.

• A combination of traditional, command, and market economic systems.

• An economy based on digital currency only.

Which of the following is NOT one of the three basic types of economic systems?

• Traditional

• Command

• Market

• Corporate

What is a characteristic feature of a market economy?

• Government controls all economic decisions

• Economic decisions are made by a central planning body

• Economic decisions are determined by the interactions of buyers and sellers

• All industries are publicly owned

Which of the following countries is an example of a market economy?

• China

• Singapore

• Russia

• North Korea

In a market economy, what role does the government play?

• An extensive role controlling most sectors

• No role at all

• A very limited role

• Sole provider of goods and services

What does the Traditional System emphasize on how products should be produced?

• Innovating with new technology

• Following historical methods

• Outsourcing production

• Using the most cost-effective methods

In a Traditional System, who primarily receives the products that are produced?

• The local community

• The highest bidder

• The family

• Overseas markets

What is a key characteristic of what will be produced in a Traditional System?

• Products that are in high demand

• Whatever was made before

• The most profitable products

• Products suggested by market research