EPF 1.2 Economic Systems Review

Which economic system combines elements of both market and planned economies?

• Traditional Economy

• Command Economy

• Free Market Economy

• Mixed Economy

What is one of the main advantages of a traditional economy?

• It allows for rapid technological innovation.

• It typically revolves around the family unit.

• It provides a wide range of modern conveniences.

• It relies heavily on international trade.

Which of the following is an example of a country with a centrally planned economy?

• United States

• Germany

• Cuba

• Japan

Which of the following is a disadvantage of a free market?

• Economic Freedom

• Economic Growth

• Monopolies

• Additional goals

How do individuals earn income according to the concept of buying and selling?

• By saving all their money

• By specializing in a particular job

• By borrowing from banks

• By selling all their possessions

How do self-interest and competition work together in the marketplace?

• They increase government control

• They create monopolies

• They keep the marketplace fair and prices responsive

• They eliminate consumer choice

Which statement is true about economic systems?

• All economies are pure market

• No economy is pure market, pure command, or pure traditional

• All economies are pure command

• All economies are pure traditional

Who is known as the "father of modern capitalism"?

• Karl Marx

• Robert Owen

• Adam Smith

• John Maynard Keynes

What significant work did Karl Marx write in 1848?

• The Wealth of Nations

• The Communist Manifesto

• Das Kapital

• Utopia

- Economic System

- No government interference

- Owners of capital are free to do as they like

• Free Enterprise

• Command Economy