Unit 8: Types of Economies

What are decisions in a traditional economy based on?

• Technology

• Customs and beliefs

• Government policies

• Market trends

Is technology used in traditional economies?

• Yes

• No

Where are traditional economies typically found?

• Urban, developed countries

• Rural, non-developed countries

• Industrialized regions

• Technologically advanced cities

What is a key feature of a command economy?

• Central/government ownership

• Free market competition

• High consumer choice

• Private ownership

True or False...In a command economy, more resources can be used.

• True

• False

What often results from a command economy in terms of goods?

• Surplus of goods

• Shortage of goods

• High quality goods

• Diverse goods

One characteristic of a Free Market Economy is:

• Minimal government interference

• Heavy government regulations

• Central planning of the economy

• Fixed pricing by the state

In a Free Market Economy, who makes decisions and has a choice? (Select the correct option)

• Consumers

• Government

• Businesses

• Producers

In a Free Market Economy, how is price determined?

• Supply and demand

• Government regulations

• Fixed pricing

• Production cost

Which of the following is a feature of a Free Market Economy?

• Government ownership of property

• Private ownership of property

• Fixed prices by the government

• No competition