Role of Government in Economy

In a command economy, who holds power over the economy?

• The people

• The government

• Beyonce

• The traditions of your ancesetors

A command economy is when the government is in control.

• True

• False

What is an economic system where only the government makes the economic decisions?

• traditional economy

• free enterprise

• mixed economy

• command economy

The government has little to no role in the production of goods in this type of economy.

• Traditional

• Mixed

• Command

• Market

The government gets to decide who gets what

• Traditional

• Command

• Mixed

• Market

A command economy is when the government is in control.

• True

• False

Government planning groups make the basic economic decisions such as which goods and service to produce, prices and wage rates.

• Command

• Traditional

• Market

• Mixed

The country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?

• Traditional

• Market

• Command

• Centrally Planned

In a free enterprise economic system, the government should protect ___________ as expressed in _____________, but does not become too involved in _______________, taxation, or fiscal policy.

• the economy, the Constitution, property rights

• the Constitution, property rights, the economy

• property rights, the Declaration of Independence, the economy

• property rights, the Constitution, the economy

What is the primary role of government in a mixed economy?

• To control all economic activities

• To regulate and support economic activities

• To eliminate private enterprises

• To dictate prices and wages