Economic Systems and Their Characteristics

The video tutorial explores different economic systems, including traditional, command, free market, and mixed economies. It discusses how each system answers the three fundamental economic questions and the goals they prioritize. Traditional economies focus on stability, command economies on equity, free markets on efficiency, and mixed economies vary. Examples from around the world illustrate these systems, highlighting their characteristics and the role of government and market forces.

Which of the following is NOT one of the four basic economic systems?

• Traditional Economy

• Free Market Economy

• Global Economy

• Command Economy

In a traditional economy, what is a common characteristic regarding employment?

• Wide range of consumer choices

• High standard of living

• High level of innovation

• Children often work the same jobs as their parents

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

• High level of private property rights

• Wide range of consumer choices

• Government answers the three economic questions

• High level of competition among businesses

In a free market economy, what primarily determines what goods and services are produced?

• Central planning

• Supply and demand

• Tradition and customs

• Government regulations

Which country is often cited as an example of a free market economy?

• New Zealand

• North Korea

• France

• Cuba

In a mixed economy, what role does the government play?

• Complete control over all economic activities

• No role at all

• Only provides public goods and services

• Regulates and intervenes in certain areas

How are goods and services typically produced in a traditional economy?

• Based on market demand

• With a lot of labor and little physical capital

• Through government planning

• Using advanced technology

In a command economy, who decides how goods and services are distributed?

• Consumers

• Market forces

• The central government

• Individual businesses

Which economic system is most likely to achieve high levels of efficiency, freedom, and growth?

• Free Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

In a mixed economy, what determines the most achievable economic goals?

• The amount of natural resources available

• The cultural values of the society

• The specific balance between market and government involvement

• The level of technological innovation