PFLE Review Unit 1 and 2

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

What is one advantage of a Command Economy?

• Individual freedom for everyone

• Health and public services are available to everyone at little or no cost.

• The government rarely interferes.

• Able to adjust to change gradually

A command economy is also known as a:

• Free enterprise system

• Consumer-driven economy

• Prosperous economy

• Planned economy

Command economies cannot prevent mass unemployment.

• True

• False

A command economy gives people the motivation to work hard:

• True

• False

I have a problem with having enough resources. What basic question of economics solves this? 

• What to produce?
• How to produce?
• When to produce? 
• For whom to produce? 

Society will never be able to satisfy all wants and ____.

• desires
• needs
• hungers
• money problems

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 

• Traditional 
• Market 
• Command 
• Mixed

What are the traits of a command economy?

• Make own goods, grow own food, barter, least used
• Has elements of two economic types
• Private ownership, free trade, competition, most used
• Government makes all economic decisions, communist countries

What is the central conflict identified by Marxism?

• left vs. right

• rich vs. poor

• white vs. black

• nations vs. other nations