6.6A - Factors of Production/Economic Systems

What is an advantage of a command economy? Select TWO correct answers.

• A. Basic education, health care, and other public services are available to citizens at little to no cost

• B. Limited individual freedom and choice

• C. Government control over resources

• D. Low levels of inequality and unemployment

What is a market economy?

• An economy where resources are owned by the government

• An economy where economic decisions are based on customs and traditions

• An economy where the government sets production quotas and prices

• An economy where individuals make economic decisions

Which of the following would be considered entrepreneurs?

• The Chinese officials who allowed economic reforms

• The families who opened small workshops

• The workers in Wenzhou’s factories

• The people who purchase the products manufactured in Wenzhou

Which of the following best describes the characteristics of traditional, market, and command economies?

• Traditional economies rely on customs and traditions, market economies are driven by supply and demand, and command economies are controlled by the government.

• Traditional economies are controlled by the government, market economies rely on customs and traditions, and command economies are driven by supply and demand.

• Traditional economies are driven by supply and demand, market economies are controlled by the government, and command economies rely on customs and traditions.

• Traditional economies are driven by technology, market economies are controlled by the government, and command economies rely on supply and demand.

What is the primary driving force behind a market economy?

• Religious beliefs

• Government regulations

• Military power

• Supply and demand

In a command economy, who typically makes the key economic decisions?

• Private businesses

• Individual consumers

• International organizations

• The government

Which of the following is a characteristic of a traditional economy?

• High level of technological innovation

• Centralized planning by the government

• Free market competition

• Economic decisions based on customs

What role do consumers play in a market economy?

• They own all the resources

• They set production quotas

• They regulate prices through government policies

• They influence demand through their purchasing choices

Which of the following is a disadvantage of a command economy?

• Flexible economic planning

• Limited consumer choice

• Rapid technological innovation

• High levels of competition

How are resources typically allocated in a traditional economy?

• According to customs and traditions

• Based on market demand

• Through government intervention

• By international trade agreements