Understanding Economic Systems Quiz

What are the three fundamental economic questions every country must answer when developing its economic plan?

• What goods/services will be produced? How will goods/services be produced? Who will consume the goods/services?

• How much money will be printed? What will be the national language? Who will be the leader?

• What will be the national currency? How will taxes be collected? Who will be the president?

Which economic system answers the three economic questions based on customs and beliefs, or what their family has done for generations?

• Command

• Market

• Traditional

In a command economy, who regulates the country's economic decisions?

• Private citizens

• The government

• International organizations

Which of the following countries is known to have a command economy?

• United States

• North Korea

• Brazil

In a market economy, how are the goods and services produced determined?

• By government regulations

• By supply and demand (what the people want) in the marketplace

• By traditional customs

Why are there no pure market economies in the world today?

• Because they are too expensive to maintain

• Because there would be no laws to ensure safety and fairness

• Because they require too much government intervention

What type of economy do most democratic countries have?

• Pure command

• Pure market

• Mixed

What does a mixed economy consist of?

• A combination of traditional and command systems

• A combination of command and market systems

• A combination of market and traditional systems

Which economic system is characterized by strict government control over all economic decisions?

• Market

• Traditional

• Command

In which economic system do regular every-day citizens answer all economic questions?

• Command

• Market

• Traditional