Economic Systems Test

Which economic system is totally controlled by the government?

• Traditional
• Command
• Market
• Mixed

Who decides what goods and services are produced in a market economy?

• villages
• governments
• businesses
• consumers

Which is a strength of a mixed economy?

• known, unchanging role
• no freedom
• low pay and low standard of living
• many choices of goods and services

Which is a weakness of a command economy?

• does not meet the needs and wants of individuals
• changes can be made and happen quickly
• excellent pay and incentives
• highly competitive and innovative

Which economic system are the three key questions answered by ancestors and customs?

• Traditional
• Command
• Market
• Mixed

What is reason for government involvement in a mixed economy?

• to decide what goods to produce
• make rules and regulations regarding safety and health
• control technology development
• set wages of workers

What is an a clear difference between market/mixed economies and traditional/command economies?

• land, labor, and capital
• based on traditions and customs
• level of government involvement
• freedom of choices of goods, services, jobs, and competition

Which economy would provide the most government assistance to the poor, disabled, unemployed, and needy?

• Traditional
• Command
• Market
• Mixed

In which system would technology and innovation be slow to develop?

• Traditional
• Command
• Market
• Mixed

We as individual consumers would have the most impact on which economic system?

• Traditonal
• Command
• Mixed
• None of these