Economic Systems and Agricultural Practices

In a traditional economy, what determines the production of goods and services?

• Market trends

• Government

• Individuals

• Traditions and customs

With whom does the ultimate power lie in a market economy?

• Bankers

• The state

• Consumers

• The military

Which forces play the greatest role in determining the distribution of goods and services in a free enterprise economic system?

• Court rulings and expert opinions

• Government officials and military needs

• Producer supply and consumer demand

• Village elders and community tradition

John lives in a country where the government has total control of the economy. The government decides what to produce, how to produce it, and who to produce it for. What economic system does he live in?

• Market

• Command

• Traditional

• None of the above

Abigail is reading about life in a particular African society. In this society, women are expected to milk the cattle twice a day and retrieve water, which they carry home on the backs of donkeys, as needed. Once every month or so, the settlement moves and each woman must move her belongings and rebuild her home. While most of the transport is done using donkeys, some older women are forced to rely on their daughters, their co-wives, and other female family members for help. Which type of economy is most likely found in the society Abigail is reading about?

• Manorial

• Traditional

• Command

• Free market

The primary focus of production in a traditional economy system is on —

• consumer electronics.

• industrial machinery.

• agricultural goods.

• military munitions.

Which of the following is true in a pure market economy?

• Some industries are privately owned, while others are owned by the state.

• Economic decisions are primarily determined by religious and cultural traditions.

• Resources, the labor supply, and the means of production are all controlled by the state.

• Supply and demand and individual decision making control economic decisions.

Which of the following is most characteristic of a market economy?

• Government control over wages

• State ownership of major industries

• Determination of prices via supply and demand

• Inadequate supply of consumer goods and services

Karl Marx and Friedrich Engels encouraged workers to improve their economic conditions by —

• supporting small regional governments.

• overthrowing the capitalist system.

• increasing the tax rate.

• establishing tariffs.

Which of the following is not a characteristic of a traditional economy?

• Use of the barter system

• State control of major industries

• Focus on subsistence agriculture

• Reliance on hunting and gathering