Let's Review: South American Economic Systems

Which of the following is one of the three questions that every country must answer when developing its economic plan?

• What goods/services will be produced?

• How will taxes be collected?

• What is the population size?

• Who will be the leader?

Which of the following is NOT one of the three questions that every country must answer when developing its economic plan?

• How will goods/services be produced?

• Who will consume the goods/services?

• What goods/services will be produced?

• How will the government be elected?

The way a country answers the three economic questions determines what kind of ________ it will have.

• economic system

• government

• currency

• language

Which of the following is NOT a type of economic system mentioned in the review?

• Traditional

• Command

• Market

• Democratic

In a Traditional Economy, all economic decisions are based on which of the following?

• Government policies

• Customs, traditions, and beliefs of the past

• Modern technology

• Market trends

In a Traditional Economy, people will make what they always made and do the same things their ______ did.

• parents

• friends

• neighbors

• teachers

What is bartering in a Traditional Economy?

• Trading using money

• Trading without using money

• Saving goods for future use

• Selling goods online

Which of the following is an example of a Traditional Economy?

• Villages in Africa & South America

• Cities in the United States

• European Union countries

• Urban areas in China

Bartering means trading without using ______.

• money

• food

• vehicles

• clothes

What type of government makes all economic decisions in a command economy?

• The people

• The government

• Private companies

• Foreign investors