MODULES 18-19 Formative assessment

Juan lives in a remote village where farming and fishing have been the main sources of livelihood for generations. People trade their goods instead of using money, and production methods have remained the same for decades. What type of economy does Juan’s village follow?

• Market Economy

• Mixed Economy

• Traditional Economy

• Command Economy

Maria is a factory worker in a country where the government decides what products should be made, how much should be produced, and how goods should be distributed. Businesses are owned by the state, and citizens have little influence on economic decisions. What type of economy does Maria live in?

• Market Economy

• Command Economy

• Traditional Economy

• Mixed Economy

A developing country wants to balance economic freedom with government regulation. The government controls essential industries like healthcare and transportation, but private businesses can operate freely in other sectors. What type of economy is this country implementing?

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

Pedro runs a small business selling handmade furniture. He decides how much to produce based on customer demand, and prices fluctuate depending on market trends. No government entity dictates what he should produce. What type of economy does Pedro participate in?

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

Anna borrowed money from a local bank to start her bakery. The bank earns profits by investing and lending money to individuals and businesses. What type of non-state institution is playing a role in Anna’s business?

• Cooperative

• Corporation

• Trade Union

• Bank

A farming community gathers all their harvest and then distributes it equally among its members, ensuring everyone has enough food. What economic process is demonstrated in this situation?

• Market Transactions

• Redistribution

• Transfers

• Reciprocity

Luis donates part of his monthly salary to an organization that helps street children, without expecting anything in return. Which economic concept does this best illustrate?

• Reciprocity

• Altruism

• Redistribution

• Market Transactions

In a local market, Carla gives her neighbor fresh vegetables from her farm, and in return, her neighbor gives her fresh fish. What economic process is happening in this exchange?

• Reciprocity

• Market Transactions

• Redistribution

• Transfers

A group of workers in a factory join an organization that fights for better wages and working conditions. This organization negotiates with company owners to ensure fair treatment of employees. What type of non-state institution does this describe?

• Corporation

• Cooperative

• Trade Union

• Bank

A wealthy business owner donates millions of pesos to a scholarship program for underprivileged students. He does not expect the students to pay him back, but he wants to help them succeed. Which economic process is best reflected in this act?

• Redistribution

• Transfers

• Reciprocity

• Market Transactions