Unit 8 LP 3 Economic Systems

Which statement about the economies of Canada and Cuba is correct?

• Both countries have pure market economies.

• Both countries have pure command economies.

• Canada's economy has more market elements than Cuba's economy.

• Canada's economy has more command elements than Cuba's economy.

How does Canada answer the three basic economic questions?

• by combining command and market economic principles

• by strictly following the principles of command economics

• by combining traditional and market economic principles

• by strictly following the principles of traditional economics

Which statement would MOST LIKELY be true in market economy?

• Most people enter the same field of employment as their ancestors.

• Economic production decisions are made by a small council of experts.

• The government provides employment and necessary resources for its people.

• Business owners decide what goods to produce and at what price to sell them.

What does the government do in a command economy?

• It promotes economic freedom.

• It makes major economic decisions.

• It encourages entrepreneurship.

• It helps the private sector grow.

What are the THREE basic economic questions all economic systems must answer?

• What goods and services will be produced?

• How will goods and services be produced?

• For whom will goods and services be produced?

• For how long will goods and services be produced?

• Why will goods and services be produced?