Economic Markets Test

What are two positives of a Communist economy?

• The government owns both land and capital

• Government planners decide what will be made

• It does guarantee jobs and income and it jump starts major industries

• Everyone's needs are met

An economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution. Countries that use this type of economic system are often rural and farm-based.

• Traditional Economy
• Free Market Economy
• Capitalist Economy
• Communist Economy

This is the economic system that believes that some resources and products should be controlled by the government but that some aspects of the business world should be controlled by private business.

• Mixed market
• Capitalism
• Communism
• Socialism

This is the economic system that believes that the government should control everything and that the people should come to an agreement about their needs. Governments that use this plan create five-year plans, allow for small free markets, but the government owns and controls everything.

• Mixed market

• Capitalism

• Communism

• Socialism

This is the economic system that is the most common. Countries may say that they practice Communism, Socialism, or Capitalism, but they really practice this type of economy. It has some government involvement, but it has a lot of private businesses that are expected to contribute to the welfare of society.

• Mixed market

• Capitalism

• Communism

• Socialism

Governments have to decide how much labor, resources, and time should be spent on a product. This varies with each type of government and how closely they watch the people that produce goods and services. Answers which question?

• How should goods and services be produced?

• Who consumes goods and services?

• How are economic goals affected by societal goals?

• What goods and services to produce?

Governments must decide on how much control they need to have over what is to be created by their society.

• What goods and services to produce?
• How should goods and services be produced?
• Who consumes goods and services?
• How are economic goals affected by societal goals?

The more power to the market, the greater number of social classes; the less power to the market, the fewer number of social classes. More consumption of goods occurs where there is a greater number of social classes.

• Who consumes goods and services?

• How are economic goals affected by societal goals?

• How should goods and services be produced?

• What goods and services to produce?

Societies/Governments must decide how to allocate resources, reduce waste, provide for the greatest population, and be the most efficient.

• How are economic goals affected by societal goals?

• Who consumes goods and services?

• How should goods and services be produced?

• What goods and services to produce?

People value the opportunity to make their own choices, describes which term?

• Economic Freedom
• Economic Security
• Economic Equity
• Economic Growth
• Economic Prosperity