Understanding Economy and Government

What is a characteristic of a market economy?

• Government controls all resources

• Prices are determined by supply and demand

• There is no private property

• Central planning dictates production

In a command economy, who makes the major economic decisions?

• Individual consumers

• Private businesses

• The government

• International organizations

Which of the following is a role of the government in a mixed economy?

• Owning all businesses

• Setting prices for all goods

• Protecting consumers and producers

• Eliminating all taxes

In a democracy, how are leaders typically chosen?

• Through inheritance

• By military force

• By voting in elections

• By appointment from a higher authority

What is a key feature of an autocracy?

• Power is shared among many leaders

• Citizens have a strong voice in government

• A single person holds all the power

• Decisions are made by consensus

What is the main goal of a traditional economy?

• To maximize profits

• To follow customs and traditions

• To innovate and develop new technologies

• To compete in global markets

In a democracy, what is the role of the citizens?

• To obey without question

• To participate in decision-making

• To serve in the military

• To pay taxes only

What is a disadvantage of an autocratic government?

• Quick decision-making

• Lack of citizen/public input

• High levels of efficiency

• Strong leadership

Which type of economy is most likely to encourage innovation and entrepreneurship?

• Command economy

• Traditional economy

• Mixed economy

What is a common feature of autocratic government?

• Free press

• Regular elections

• Limited to no political freedoms

• Multiple political parties