Economic Systems

What fundamental problem do nearly all societies face regarding resources?

• Unlimited resources for everyone.

• Distributing limited resources fairly and effectively.

• Lack of cultural traditions.

• Excessive government control over markets.

What is the focus of the traditional economy?

• community

• government

• military

• power

Decisions in the market economy are made by

• the government

• consumers

• economic planners

• dictator

• traditions

In a command economy, who primarily makes economic decisions?

• Individual consumers.

• Cultural traditions and rituals.

• The government.

• A balance of consumer and government choices.

Why are there no true pure market economies in the world?

• They are based on outdated cultural rituals.

• They rely too heavily on government intervention.

• They lack consumer choice.

• They involve no government involvement, which is impractical.

What defines a mixed economy?

• Complete government control over all resources.

• Decisions made entirely by individual consumers.

• A combination of limited government involvement and free market concepts.

• An economy focused solely on subsistence farming and hunting.

From the notes from yesterday's class, which country would be an example of a Command Economy?

• South Korea

• North Korea

• United States

• Canada