Understanding Economic Systems

Which of the following best describes a mixed economy?

• An economy where all decisions are made by the government.

• An economy that operates without any government intervention.

• An economy that incorporates elements of both market and command economies.

• An economy where decisions are made solely through market forces without any regulation.

- Economic System

- No government interference

- Owners of capital are free to do as they like

• Free Enterprise

• Command Economy

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

• Central planning

• Price controls

• Voluntary exchange

• Production quotas

A command economy is characterized by which of the following?

• High levels of competition among businesses

• Minimal government intervention in economic decisions

• Government making all economic decisions

• Consumer preferences determining production

In a market economy, who primarily decides what goods and services should be produced?

• The government

• Consumers

• Large corporations

• International trade partners

What is the primary characteristic of a traditional economic system?

• Centralized decision-making

• Reliance on customs and traditions

• Use of advanced technology

• Government ownership of resources

Which of the following is a feature of a command economy?

• Free market competition

• Private ownership of resources

• Government control of production and prices

• Minimal government intervention

In a market economy, who primarily makes the economic decisions?

• The government

• Central planners

• Individual consumers and producers

• International organizations

In which economic system are prices determined by supply and demand?

• Command economy

• Traditional economy

• Market economy

• Mixed economy