Understanding Economic Systems

What are the basic components of an economy that fulfill people's needs and wants?

• Only goods

• Only services

• Goods and services

• Neither goods nor services

Which economic system relies heavily on trading and bartering?

• Free market

• Command

• Traditional

• Mixed

In which economic system does the government have almost complete control over production?

• Free market

• Mixed

• Traditional

• Command

What is a potential downside of a free market system?

• Limited availability of goods

• Government control over all production

• Risk of exploitation and poor quality goods

• Lack of freedom for businesses

Why do most countries prefer a mixed economy?

• It allows for complete government control

• It eliminates the need for goods and services

• It balances government control with market freedom

• It relies solely on traditional methods