Unit 2: Economic Systems Quiz

Government officials in the country of Degobah met to decide what the country should focus on producing. After much deliberation, they decided to use the country’s limited resources to make swamp speeder cars instead of other goods like electronics or bikes. They gave factories the materials and workers needed, told them how many cars to make, and where to send them. One might say they FORCED them...

• traditional economy
• command economy
• market economy
• mixed economy

In the country of Curoscant , business owners make most economic decisions. As long as they abide by and follow the laws of government, they can decide what to produce, how to produce, and for whom to produce without government intervention. These decisions are made by business owners based on what happens in the market. For example, a computer company waited to release a new gaming system until the holidays, hoping that excitement would let them charge a higher price.

• traditional economy
• command economy
• market economy
• mixed economy

In the country Mustafar, only business owners decide what to produce, how much to produce, and who to produce for. The owner of High Ground Electronics, one of the leading cell phone producers in the country, recently decided to increase production levels of the company’s newest cell phone model (the Kenobi), and at the same time decrease production levels of their most popular laptop (the Anakin). The reason for the emphasis on cell phones is that demand for laptops has decreased dramatically. Simply put, there is more profit to be made in the cell phone market.

• traditional economy
• command economy
• market economy
• mixed economy

In the country of Hoth, people almost never buy goods or services. For the most part, they do not need to. Families grow their own vegetables and raise their own animals or hunt to get meat. Certain times get tough for people in Hoth, like when the winters are particularly cold or animals change their migration patterns. For this reason, it is important that families stock up in “good times” and develop relationships with neighbors with whom they can share or trade.

• traditional economy
• command economy
• market economy
• mixed economy

Which of the following best describes a mixed economy?

• An economy where all decisions are made by the government.

• An economy that operates without any government intervention.

• An economy that incorporates elements of both market and command economies.

• An economy where decisions are made solely through market forces without any regulation.

A command economy is characterized by which of the following?

• High levels of competition among businesses

• Minimal government intervention in economic decisions

• Government making all economic decisions

• Consumer preferences determining production

A system that relies on customs, history, and time-honored beliefs. Tradition guides  economic decisions such as production and distribution. Depends on agriculture, fishing,  hunting, gathering, or some combination of the above. They use barter instead of money.

• Traditional Economy

• Command Economy

• Market Economy

In the United States, we have a ​ (a)   economy.

• mixed
• traditional
• command
• barter
• pure market

The right of individuals and businesses to own real and personal property as well as the means of production without undue government interference is—

• Government control

• Profit motive

• Competition

• Private property

True or False:

Under a free enterprise system, people must work in a profession that is chosen for them by the government:

• True

• False