Economics: Types of Economies

Front

Which type of economic system does the United States have?

Back

Mixed

Answer explanation

The United States has a mixed economic system, combining elements of both market and command economies. This allows for private enterprise alongside government regulation, making 'Mixed' the correct choice.

Front

What kind of economic system does the tribe's reliance on hunting and farming for food describe?

Back

Traditional

Answer explanation

The tribe's reliance on hunting and farming, along with the boy's intention to follow his father's farming path, indicates a traditional economic system. This system is based on customs and practices passed down through generations.

Front

In what type of economy did consumers in the former Soviet Union live, where they had to wait in long lines to buy everyday items like bread, had limited choices, and the government controlled factories?

Back

Command

Answer explanation

The former Soviet Union had a command economy where the government controlled production and distribution, leading to long lines and limited choices for consumers. This is characteristic of a command economy.

Front

In a market economy, goods and services were privately owned businesses.

Back

True

Answer explanation

In a market economy, the means of production and distribution of goods and services are primarily owned and operated by private individuals or businesses, making the statement true.

Front

In a Command Economy, the government provides and controls the goods and services.

Back

True

Answer explanation

In a Command Economy, the government indeed provides and controls the goods and services, making the statement true.

Front

What type of economy does North Korea have? Although there have been small market reforms in North Korea, the majority of legal economic activities are centrally controlled by the government.

Back

Command

Answer explanation

North Korea's economy is primarily controlled by the government, with most economic activities centrally planned. This characteristic defines a command economy, where the state makes all decisions regarding production and distribution.

Front

In China, 40% of the economy is based in state-run industries while 60% is based on the private sectors where producers and consumers make production decisions. What type of economy does this reflect?

Back

Mixed

Answer explanation

China's economy, with 40% in state-run industries and 60% in private sectors, reflects a mixed economy. This system combines elements of both command (state control) and market (private decision-making) economies.

Front

Turkey has a diversified economy with large service, manufacturing, and agricultural sectors. It has gradually moved from government directed economy to more private enterprise. Which economic description best suits Turkey?

Back

Mixed/Market

Answer explanation

Turkey's economy is characterized by a mix of private enterprise and government involvement, making 'Mixed/Market' the best description. It has transitioned from a command economy to one that supports market-driven activities.

Front

Something from nature that people can use. It is NOT created by humans. What type of resource is this?

Back

Natural

Answer explanation

The correct answer is 'Natural' because it refers to resources that exist in nature and are not made by humans, such as water, minerals, and forests. Other options like 'Capital' and 'Human' involve human creation or labor.

Front

Money, products, and supplies used in the production of goods and services are called

Back

Capital Resources

Answer explanation

Money, products, and supplies used in production are classified as Capital Resources. They are essential for creating goods and services, distinguishing them from Natural and Human Resources.