Types of Economy Systems

 In a traditional economic system, the factors of production are controlled by individuals and the government.

• True

• False

Prices of goods and services in a traditional economy are determined through supply and demand.

• True

• False

In a market economic system, businesses and individuals control the factors of production.

• True

• False

Prices of goods and services in a market economy are determined by government officials.

• True

• False

The role of the people in a traditional economy is to live simple lives and take care of one another.

• True

• False

A monarchy is one of the best types of government that works with a traditional economic system.

• True

• False

In a command economic system, the government distributes needed goods and services to the people.

• True

• False

Prices of goods and services in a command economy are determined by supply and demand.

• True

• False

The role of the people in a command economy is to make economic decisions and have freedom of choice.

• True

• False

A dictatorship is the best type of government that works with a command economic system.

• True

• False