Four Types of Economies Quiz

When the government controls all major industries and decides what products will be produced and how many of each type of product will be produced, what type of economy is described?

• mixed
• market
• traditional
• command

Economies must address how to produce goods and services. In the economy of a certain country, some factories are owned by individuals and private companies, and other factories are owned and controlled by the government. What type of economy does this country have?

• mixed
• market
• traditional
• command

In determining what to produce, how do market economies typically respond to high consumer demand for a product?

• Private companies increase production of the product
• The government regulates the price of the product
• The government sets production quotas until the demand is met
• Private companies and the government work together to reduce demand

Which statement correctly describes the role of the government in a country with a mixed economy?

• The government makes some production and distribution decisions, but other economic decisions are made by individuals
• The government allows economic decisions to be made by the society’s traditions and customs
• The government makes all decisions regarding the production and distribution of goods
• The government exercises no decision making in economic matters; production and distribution are determined solely by individuals

Economic systems answer the question of how goods and services are produced. What is one way a country could change from a command economy to a market economy?

• if industries that had been owned by the government become privately owned
• if agricultural and factory workers are required to join labor unions
• if privately owned banks become subject to stricter regulation
• if the government takes control of family-owned farms

In a certain country, decisions regarding production and consumption of goods are based upon customs, beliefs, rituals, and habits. Over time, the economic system changes to one in which production decisions are based on competition and consumer choice. How has the economic system of this country changed?

• from a traditional economy to a market economy
• from a market economy to a traditional economy
• from a mixed economy to a command economy
• from a command economy to a mixed economy

In a certain country, all decisions concerning the production of goods and services are made by the government. However, following a political revolution, a new economic system is set up in which some decisions regarding production of goods and services are made by the government and others are made by individuals and private companies. How has the economy of this country changed?

• from a traditional economy to a command economy
• from a market economy to a traditional economy
• from a mixed economy to a command economy
• from a command economy to a mixed economy

1. What will be produced? 2. Who will do the producing? 3. Who can use what is produced?

• the three main questions that each of the four types of economies try to answer
• Yes, No, You
• a society's categorization of its people into groups based on socioeconomic factors like wealth, income, race, education, ethnicity, gender, occupation, social status, or derived power
• These three tasks are carried out in an integrated manner so that the goal of achieving and maintaining the stability of the rupiah can be achieved effectively and efficiently

Match the following

• Traditional economy

• In this economy, the government makes decisions about what to produce, how to produce, and who can use what is produced

• Market economy

• In this economy, ancestral customs and practices help people make decisions about what to produce, how to produce, and who can use what is produced

• Command economy

• In this economy, private individuals make decisions about what to produce, how to produce, and who can use what is produced

• Mixed economy

• In this type of economy, two or three of the others may be combined into one

Match the following

• Traditional economy

• In this economy, there is more freedom for individuals to choose how to run their own businesses free of government regulation

• Command economy

• In this economy, there is supposed to be equality, meaning no rich or poor, with the government imposing this equality on the people

• Market economy

• In this economy, you would do what your ancestors have done for generations; if your grandpa and dad were chicken farmers, then you will be a chicken farmer