Economic Systems Quiz Practice

Which of the following statements accurately describes a characteristic of a command economy compared to a market economy?

• In a command economy, the government controls production and distribution.

• Market economies typically have more government intervention.

• Command economies encourage private ownership of businesses.

• In a market economy, the government owns all resources.

Which economic system is characterized by the government making all production and distribution decisions?

• mixed economy

• traditional economy

• market economy

• command economy

In which economic system does the government control all major aspects of the economy, including production and distribution, thereby eliminating private ownership and market competition?

Based on the chart, what can be inferred about the economic system in Australia?

• the market dictates the production of goods.

• property is distributed based on individual needs.

• the federal government controls most of the land.

• regional governments manage the majority of capital resources.

Which characteristic is PRIMARILY associated with a command economy?

• competition among suppliers in the market

• free access to the marketplace for producers

• government decision making about what will be produced

• competition in the marketplace to provide consumer choice

"Australia has one of the freest economies in the world." Which answer would support this statement?

• There is not a lot of government control of businesses.

• Government-owned companies are profitable.

• Citizens can vote for their political leaders.

• The government sets the prices.

Government sets regulations for businesses Both private sectors and the government influence the economy Individuals have private property rights Employment is provided by both private and government sectors What type of economic system is being described?

• Command

• Market

• Mixed

• Traditional

Customs and habits answer the questions of who, what and how to produce Barter system, no actual money Roles within the community are defined by culture and rituals What type of economic system is described?

• Command

• Market

In this economic system, businesses operate for profit, and the prices of goods and services are determined by supply and demand with no government interference.

• command

• communism

• market

• mixed

The Economic Freedom Index is an annual score given to a country's economy that measures the degree of economic freedom a country has. In the past 20 years, Australia's Economic Freedom Score has increased by 7.9 points. Such a move indicates that Australia's economic system has made a shift from ______________ to more of a __________________.

• from barter to market

• from market to command

• from command to market

• from command to traditional