Economic Systems Quiz

What are the three basic economic questions every country must answer?

• What to produce? How to produce? For whom to produce?

• When to produce? Where to produce? Why to produce?

• Who to produce? What to sell? How to sell?

• How to buy? What to buy? Where to buy?

Which economic system relies on government control of production and distribution?

• Traditional

• Command

• Market

• Mixed

In which economic system do people make what they need to survive based on customs and values?

• Command

• Market

• Traditional

• Mixed

What determines what businesses produce and how much consumers will pay in a market economy?

• Government regulations

• Supply and demand

• Traditional customs

• Random choice

Diagram showing the Mixed Economic Continuum with Pure Command on one end and Pure Market on the other.

• Mixed Economy

• Traditional Economy

• Pure Command Economy

• Pure Market Economy

Identify each element as a market element (ME) or command element (CE) of an economy: The price of goods and services are set or controlled by the government.

• Market Element (ME)

• Command Element (CE)

• Both ME and CE

• Neither ME nor CE

Identify each element as a market element (ME) or command element (CE) of an economy: The people own private property, such as land, factories, and businesses.

• Market Element (ME)

• Command Element (CE)

• Both ME and CE

• Neither ME nor CE

Identify each element as a market element (ME) or command element (CE) of an economy: Businesses decide what to produce, and consumers decide whether to buy the goods.

• Market Element (ME)

• Command Element (CE)

• Both ME and CE

• Neither ME nor CE

Identify each element as a market element (ME) or command element (CE) of an economy: Some businesses, and sometimes entire industries, are controlled by the government.

• Market Element (ME)

• Command Element (CE)

• Both ME and CE

• Neither ME nor CE

Before 1991, what type of economy was Russia a part of?

• Market economy

• Command economy

• Mixed economy

• Traditional economy