Econ Systems

In a pure market economy, who owns all the resources?

• The government

• Private firms

• Private individuals

• Non-profit organizations

What is are major problems with pure market economies?

• No public goods

• High levels of government intervention

• 
  Economic fluctuations

  
  

• Consumers have low priority

In a pure command economy, who controls all production?

• The government

• Non-profit organizations

• Private firms

• Individual entrepreneurs

Which of the following is a characteristic of a mixed economy?

• No private firms

• All resources owned by the government

• Higher standards of living

• No government intervention

What is privatization in the context of a transitional economy?

• Converting government entities to private enterprises

• Eliminating all forms of private ownership

• Converting private enterprises to government entities

• Increasing government control over private firms

Which of the following are problems with command economies?

• No role for entrepreneurs

• Efficient resource allocation

• Central planning can be inefficient

• High consumer priority

In a traditional economy, what largely shapes economic activities?

• Technological innovation

• Custom or religion

• Market competition

• Government policies

Which of the following is an example of a country with a mixed economy?

• North Korea

• United States

• Saudi Arabia

• Cuba

How are mixed economies different from pure market economies?

• Mixed economies place greater emphasis on entrepreneurship.

• Mixed economies provide a greater degree of economic freedom

• Mixed economies place greater emphasis on the use of bartering

• Mixed economies involve a greater degree of government control