Economic Systems Flashcard

Front

What is the key factor in deciding the type of economic system to use in a country?

Back

The amount of government involvement

Front

Which of the following is NOT one of the three basic economic questions that all societies must answer?
What will be produced?
How will it be produced?
For whom will it be produced?

Back

When will it be produced?

Front

What characterizes a traditional economy?

Back

Economic decisions based on established customs or practice

Front

What is a defining feature of a free market economy?

Back

Minimal government involvement in the economy

Front

Which of the following is an example of what is rewarded by a free market economic system? Government regulation, Entrepreneurial boldness, Collective ownership, Price fixing

Back

Entrepreneurial boldness

Front

What does a command economy mean?

Back

An economy where property and resources are centrally owned and controlled by the government.

Front

What is a characteristic of a command economy?

Back

Economic decisions are made by a centralized authority that controls all aspects of the economy.

Front

What is another term for a command economy?

Back

Centrally-planned economy

Front

How does a mixed economy differ from a command economy?

Back

A mixed economy includes both private sector and government control, unlike a command economy.

Front

Which sector does the government operate as owner and decision-maker in a mixed economy?

Back

Public sector