Economic Systems Quiz

In which type of economy does the government have the most control over resources and production?

• traditional economy

• command economy

• market economy

• mixed economy

Government owns the factors of production Government answers the question of who, what and how to produce Government eliminates choice and competition What type of economic system is described?

Even though Australia has great economic freedom, the government requires some products to meet safety and manufacturing standards. This means that overall Australia's economy can BEST be classified as a

• A mixed economy.

• B market economy.

• C command economy.

• D traditional economy.

Using this chart, you can conclude that in Australia’s economy

• A buyers and sellers determine what goods are made.

• B private property is rationed out according to need.

• C the national government owns most of the land resources.

• D the provincial governments own most of the capital resources.

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions.

• Consumers decide through their behavior in the marketplace.

• The government decides what will be produced.

• Supply and demand control production and price.

Which characteristic is PRIMARILY associated with a command economy?

• competition among suppliers in the market

• free access to the marketplace for producers

• government decision making about what will be produced

• competition in the marketplace to provide consumer choice

In a market economy, prices are established by

• consumers and labor unions.

• decree of government agencies.

• supply and demand.

• customs and traditions.

Which of these is a correct description of one of the ways in which a command economy differs from a market economy?

• Market economies discourage free enterprise.

• In a market economy, the government sets prices.

• Command economies tend to have a higher per capita GDP.

• In a command economy, individuals have less economic freedom.

Government regulated business laws. Both private sectors and the government control the economy. Individuals have exclusive property rights. Labor force is hired by private and government sectors. What type of economic system does this describe?

• Command

• Market

• Mixed

• Traditional

Customs and habits answer the questions of who, what and how to produce. Barter system, no actual money. Roles within the community are defined by culture and rituals. What type of economic system is described?

• Command

• Market