Ch. 2 - Economic Systems

Which involves making economic choices based on customs?

• command economy

• traditional economy

• mixed economy

• market economy

Which involves having the government make most economic decisions?

• command economy

• traditional economy

• mixed economy

• market economy

Which is based mainly on individual choice?

• command economy

• traditional economy

• mixed economy

• market economy

Which is an advantage of a traditional economy?

• very flexible and open to change

• efficient use of resources

• little disagreement over economic goals

• people do jobs best suited to them

Which is a disadvantage of a traditional economy?

• does not ensure maximum productivity

• does not clearly answer economic questions

• does not always use same production methods

• does not produce what ensures survival

Which is another term for a command economy?

• traditional economy

• centrally planned economy

• mixed economy

• bureaucratic economy

Which allows no private ownership of property?

• socialism

• monarchy

• communism

• capitalism

Fill in the blank: A _______ economy involves making economic choices based on customs.

• command economy

• traditional economy

• mixed economy

• market economy

Who wrote an economic study called Das Kapital?

• Karl Marx

• Vladimir Lenin

• Adam Smith

• Friedrich Engels

The idea that consumers are free to buy what they want is known as ____.

• competition

• profit

• consumer sovereignty

• specialization

• product market