Economic Systems Quiz

Which type of economy is characterized by significant government control over all aspects of economic activity?

• Market Economy

• Mixed Economy

• Command Economy

• Traditional Economy

In a command economy, who typically owns the means of production?

• Private individuals

• The state

• Foreign investors

• Corporations

Which countries are examples of command economies?

• United States and Canada

• Germany and France

• North Korea and Cuba

• Japan and South Korea

What drives a market economy?

• Government planning

• Supply and demand

• International trade agreements

• Technological advancements

What is a major advantage of market economies?

• Centralized control

• High efficiency and innovation

• Equal income distribution

• Government subsidies

What is a mixed economy?

• An economy with no government intervention

• An economy with only private ownership

• An economy combining elements of command and market systems

• An economy based solely on barter

How are prices determined in a market economy?

• By government decree

• By consumer willingness to pay

• By international standards

• By historical precedent

What encourages businesses to improve products in a market economy?

• Government mandates

• Consumer demand

• Competition

• Tax incentives

What is a potential result of little competition in a command economy?

• Increased innovation

• Improved product quality

• Lack of incentive to improve

• Lower consumer prices

In a mixed economy, who works together to influence the economy?

• Government and private sector

• Only the government

• Only the private sector

• International organizations