Economic Systems

Which of the following best describes a mixed economic system?

• An economy where all resources are owned by the government.

• An economy where all resources are owned by private individuals.

• An economy that combines elements of both capitalism and socialism.

• An economy that relies solely on barter trade.

In a command economic system, who makes the primary decisions about what to produce?

• Individual consumers

• Private businesses

• The government

• International organizations

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

• Traditional economy

• Command economy

• Market economy

• Mixed economy

What is a primary characteristic of a traditional economic system?

• Centralized decision-making

• Use of currency for trade

• Reliance on customs and traditions

• High level of industrialization

In a market economy, how are prices determined?

• By the government

• By international agreements

• Through supply and demand

• By monopolies

Which of the following is a disadvantage of a command economic system?

• Lack of government intervention

• Inefficient resource distribution

• High levels of competition

• Rapid technological advancement

What role does the government play in a mixed economic system?

• No role at all

• Complete control over all economic activities

• Regulation and oversight to balance the market

• Ownership of all businesses

How does a traditional economic system typically handle technological change?

• Rapid adoption of new technologies

• Resistance to change and reliance on traditional methods

• Government-mandated technology upgrades

• Private sector-driven innovation

Which economic system is characterized by the phrase 'laissez-faire'?

• Command economy

• Market economy

• Traditional economy

• Mixed economy

In which economic system are resources allocated based on customs and beliefs?

• Market economy

• Command economy

• Traditional economy

• Mixed economy