Types of Economic Systems

Which of the following best describes a command economy?

• People trade goods with no money involved

• The government controls what is produced and sold

• People freely own and run businesses

• Businesses are only allowed to sell food

In a traditional economy, how are economic decisions usually made?

• By the government using computers

• By asking for help from other countries

• Based on customs, traditions, and past ways

• By voting on what should be sold

Which type of economy allows individuals to make most economic decisions, but the government still has some rules?

• Mixed economy

• Command economy

• Traditional economy

• Trade economy

Which economy type is most likely to have street vendors, small businesses, and competition between stores?

• Command

• Traditional

• Mixed/Free Market

• Wholesale

What does GDP (Gross Domestic Product) measure?

• The number of schools in a country

• The total amount of goods and services a country produces

• The number of people without jobs

• The amount of farmland in a country

A country with a high literacy rate usually has:

• More people who can read and write

• A larger army

• Fewer schools

• More farms

What does a high infant mortality rate tell you about a country?

• It has good hospitals

• Babies are very healthy

• Many babies die before age one

• There are no children in the country

If a country has a high life expectancy, what does that mean?

• Most people live to be older

• Most people have pets

• People work many jobs

• Most people are young

Which industry involves growing crops and raising animals?

• Retail

• Manufacturing

• Service

• Agricultural

What does the manufacturing industry do?

• Sells items in stores

• Grows food and raises animals

• Makes products in factories

• Delivers packages to homes