Econ- 3.2 Formative Assessment- Option 2

Mixed economic systems are made up of characteristics of which 2 other economics systems?

• Traditional and Command

• Command and Free Market

• Free Market and Traditional

The _________ economic system is the most rarely type of economic system.

In a traditional economic system, what is the primary method of production?

• • Using advanced technology

• • Large amounts of labor and little physical capital

• • Full reliance on supply and demand

• • Government-mandated methods

In a traditional economic system, children often work the same jobs their parents worked, such as ___________ or hunting/gathering.

One drawback of a traditional economic system is that there is very little economic ___________.

What is a significant drawback of a command economic system?

• • High level of competition

• • Many shortages of consumer goods

• • Consumers have many choices

• • High level of economic freedom

In a command economy, who decides what goods and services will be produced?

• • Individual consumer

• • Private businesses

• • Central government

• • Market demand

True or False: In a free market economy, the government sets prices for goods and services.

Which of the following is a characteristic of a free market economy?

• No competition between businesses

• Consumers have very few choices

• Complete or nearly complete reliance on supply and demand

• Centralized planning by the government

In a free market economy, prices are determined by _________.