Introduction to Economic Systems

What is one of the key questions countries must answer about their economic systems?

• How to choose a leader

• How to allocate resources

• How to settle disagreements

• How to secure survival needs.

How are resources typically allocated in a command economy?

• By market demand

• By government planning

• By traditional methods

• By individual choice.

Fill in the blank: In a _______ economy, economic decisions are based on supply and demand.

• Traditional

• Command

• Market

• Mixed

What is the primary goal of a traditional economy?

• Profit

• Innovation

• Survival, good of the group

• Expansion

The customs and beliefs in a traditional economy are handed down from ______.

• textbooks

• generation to generation

• government policies

• the internet

Which of the following is NOT true about a command economy?

• A) Government decides what goods and services will be produced

• B) Government officials use their judgment

• C) Government owns means of production

• D) Market forces determine prices.

Fill in the blank: North Korea is the closest example we have to a modern day ________ economy.

• Market

• Command

• Traditional

• Mixed

Which of the following is an objective of the lesson on economic systems?

• Collaborate in allocating resources

• Learn about ancient economies

• Study the stock market

• Understand global trade.

What drives the economy in a market system?

• Central planning

• Consumer and producer choices

• Government mandates

• International trade

The concept of self-interest in a market economy is primarily associated with:

• Karl Marx

• Adam Smith

• John Maynard Keynes

• David Ricardo