Economic Systems

Which economic system is characterized by the government making all decisions about the production and distribution of goods?

• Market economy

• Mixed economy

• Command economy

• Traditional economy

In a market economy, what determines the price of goods and services?

• Government regulations

• Supply and demand

• Cultural traditions

• Central planning

Which of the following is a feature of a mixed economy?

• Complete government control

• No government intervention

• Combination of private and public sectors

• Only traditional methods of production

What is the primary goal of a traditional economic system?

• Profit maximization

• Sustainability and survival

• Technological advancement

• Global trade

In a command economy, who typically owns the means of production?

• Private individuals

• Corporations

• The government

• Foreign investors

Which economic system is most likely to encourage innovation and entrepreneurship?

• Command economy

• Market economy

• Traditional economy

• Feudal economy

What is a potential disadvantage of a market economy?

• Lack of competition

• Inequality of wealth

• Overregulation

• Limited consumer choice

How does a mixed economy attempt to balance economic goals?

• By eliminating private enterprise

• By combining elements of capitalism and socialism

• By focusing solely on agricultural production

• By relying on barter systems

Tags

NGSS.HS-ETS1-3

Which economic system relies heavily on customs and traditions to make economic decisions?

• Market economy

• Mixed economy

• Traditional economy

• Command economy

What is a common characteristic of a command economy?

• Decentralized decision-making

• Consumer sovereignty

• Centralized planning

• Free market competition