ML FBLA Exploring Economics - Economic Systems

What is an economic system?

• A system for distributing free food

• A way to manage the production and distribution of goods and services

• A type of government

• A type of market

Which of the following is a characteristic of a command economy?

• The government controls most aspects of the economy

• Individuals make all economic decisions

• There is no government involvement

• Prices are set by private businesses

In a market economy, who decides what goods and services to produce?

• The government

• Businesses and consumers

• The military

• Central planners

What is the main difference between a market economy and a command economy?

• In a market economy, the government controls everything.

• In a command economy, individuals control production.

• In a market economy, individuals control production and consumption.

• In a command economy, people vote on all economic decisions.

Which economic system is found in the United States?

• Command economy

• Mixed economy

• Traditional economy

• Market economy

In which type of economy do customs and traditions play a significant role in economic decisions?

• Command economy

• Traditional economy

• Market economy

• Mixed economy

Which of the following is true of a mixed economy?

• The government controls all aspects of the economy.

• The government and private individuals share control over the economy.

• There is no government involvement in the economy.

• All goods are produced based on tradition.

Which of the following is an example of a country with a command economy?

• United States

• North Korea

• Japan

• Germany

Which of these is the main goal of a market economy?

• Maximizing government control

• Maximizing competition and profit

• Meeting the needs of the community

• Maintaining tradition

What is the role of consumers in a market economy?

• To set prices

• To decide what is produced and consumed based on demand

• To make all economic decisions

• To control government policy