Economic Systems Test

Which type of economic system is dying out because it has proven less successful? Explain WHY.

Answer explanation

Think back on your parking lot activity. People were more focused on meeting minimum requirements than by doing a good job.

How does a Market Economy Answer the 3 basic economic questions that need to be addressed?

Answer explanation

The name of the system indicates what is in control

Which type of economic system typically is best for raising a country's standard of living? WHY?

How does a traditional economy answer the basic economic questions?

What are the 3 basic questions that all economies must answer?

Which economic system is not found very frequently in our modern world as compared to the other 2? Why?

Match the following...

• Their horns don't work

• Controlled by historic values and decisions that have stood for generations

• Market

• Controlled by the wants and needs of consumers

• Command

• Why do cows wear bells?

• Traditional

• Controlled solely by the government and what they believe is best

• Mixed

• Controlled by the private and public sectors to prevent failure

Match each letter with the BEST description of the type of economy that would exist at that point on the spectrum.

• Y

• Most major industries are controlled by the government and there is little protection of private property rights.

• X

• The government regulates major industries to protect the environment and the rights of workers.

• Z

• There are few barriers to entry into most industries and most economic decisions are determined by the forces of supply and demand.

Choose the correct answer from each drop-down menu to complete the statements.

Private ownership of goods and services is​ ​ (a)  

Conversely, government ownership is​ ​ (b)  

• communism
• congressionalism
• capitalism.

Why would we describe all national economies as mixed economic systems?