Economic Systems

Ted is working towards his dream of becoming a lawyer by working at a law firm as a legal clerk.

• Free Market
• Traditional
• Command

What type of economy do most countries in the world have?

• Market economy
• Command economy
• Traditional economy
• Mixed economy

Which of the following is NOT one of the three basic questions of economics when looking at economic systems? 

• What goods and services will be produced?
• What is the price of the goods? 
• Who is responsible for producing goods and services?
• How will goods and services be distributed to customers?

What is an economic system where only the government makes the economic decisions?

• traditional economy

• free enterprise

• mixed economy

• command economy

The government has little to no role in the production of goods in this type of economy.

• Traditional

• Mixed

• Command

• Market

Businesses have freedom to produce whatever they think consumers will buy

• Market

• Command

• Mixed

• Traditional

In which economic system is the protection of private property rights essential?

• Command

• Traditional

• Market

• Socialism

Capitalism relies on

• government direction

• self-interest

• needs of society

• love

What system does the gov't have a "laissez faire" approach (hands off)

• communism

• authoritarian socialism

• democratic socialism

• capitalism

According to Adam Smith, a free market economy is guided by the concept of:

• the "Invisible Hand"

• the gold standard

• gov't control of all property

• equally distributing wealth among workers