Economic Systems Quiz 2

In a free-market economy, ___________ determines the prices of goods and services.

• Government regulation

• Consumer demand

• Supply and demand

• International agreements

A mixed economy combines elements of both ___________ and ___________ economic systems.

• Command, Traditional

• Free market, Command

• Free market, Barter

• Socialism, Communism

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

• Heavy government control

• Barter and trade

• Technological advancement

• A high level of market competition

Which of the following is NOT a feature of a mixed economy?

• Combination of public and private sectors

• Complete absence of government regulation

• Consumer choice

• Government provides some essential services

A free-market economy allows businesses to operate with minimal government interference.

• True

• False

In a command economy, private businesses have the most control over production and pricing.

• True

• False

David lives in a country where the government sets production targets, determines prices, and owns most industries. What type of economy is this?

• Free-market economy

• Traditional economy

• Command economy

• Mixed economy

Sarah is a farmer who trades her crops for household supplies instead of using money. This is an example of which economic system?

• Free-market economy

• Traditional economy

• Command economy

• Mixed economy

All of the following are characteristics of a free-market economy except:

• Government control over prices

• Consumer choice

• Private ownership

• Competition

All of the following are advantages of a mixed economy except:

• Protection of private businesses

• High degree of government control

• Balance between public and private sectors

• Consumer choice