Economic Systems and Concepts

In a small village in the Andes Mountains, families grow crops and raise animals the same way their ancestors did. Goods are traded without using money. What kind of economic system is this?

• Market

• Command

• Traditional

• Mixed

In Country A, the government decides what goods will be produced and sets all prices. Citizens are assigned jobs by the government. What type of economy is this?

• Traditional

• Command

• Market

• Mixed

A business owner in Mexico chooses to sell handmade crafts online and sets their own prices, but must follow safety regulations. What type of economy does this show?

• Traditional

• Command

• Mixed

• Market

In Brazil, companies decide how much of a product to make based on what people are willing to pay, but the government still regulates environmental safety. What type of economy is this?

• Traditional

• Command

• Mixed

• Market

A farmer in Cuba is told by the government what to grow and how much to sell it for. What type of economy does this describe?

• Traditional

• Command

• Market

• Mixed

A new country wants businesses to make their own decisions but also wants the government to provide public healthcare. Where would this economy fall on the continuum?

• Pure market

• Pure command

• Mixed

• Traditional

In a small town in Brazil, people can open businesses, but taxes and product regulations come from the government. What economic system is this?

• Traditional

• Command

• Mixed

• Market

A clothing factory in Mexico chooses its own materials, hires its own workers, and sells directly to consumers. What question is being answered here: “How to produce?”

• Yes

• No

A village in the Amazon makes pottery and uses it to trade for food and clothes. Which economic question is answered by “For whom to produce”?

• What to produce

• How to produce

• For whom to produce

• Who to hire

Cuba allows private restaurants to operate but still controls many industries. What does this say about Cuba’s economy?

• Pure market

• Mixed leaning command

• Pure command

• Market leaning traditional