Economic Systems

What is an economic system primarily responsible for?

• Determining who gets what, how much things cost, and how wealth is distributed.

• Eliminating the need for money and banks.

• Ensuring all citizens have equal access to resources.

• Promoting self-interest in competitive markets.

Which of the following are the four main types of economic systems?

• Traditional, Command, Market, and Mixed.

• Capitalist, Socialist, Communist, and Bartering.

• Agricultural, Industrial, Service, and Digital.

• Developed, Developing, Underdeveloped, and Emerging.

Which of the following is a characteristic of a Traditional Economy?

• Driven by supply and demand.

• Government controls all economic activity.

• Relies on customs, beliefs, and bartering.

• Combines elements of market and command.

What is an advantage of a command economy?

• High levels of individual freedom and choice.
• Low unemployment rates

• Increased competition among businesses.
• Rapid technological innovation and growth.

What is a major disadvantage of a Command Economy?

• High unemployment rates.

• Lack of social security and healthcare.

• Limited personal freedom.

• Slow industrialization.

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What is an advantage of a market economy?

• Stagnation in technological development
• Limited consumer choice
• High levels of government control
• Efficient resource allocation and innovation.

What is a potential disadvantage of a market economy?

• Limited variety of goods and services

• High efficiency in resource allocation

• Economic instability

• Lack of innovation

Which characteristic best describes a mixed economy?

• All industries are owned and controlled by the government.

• Economic decisions are based solely on customs and traditions.

• It combines elements of both market and command economies.

• Private businesses operate without any government regulation.

Which country is described as having a socialist government but a capitalist economy, with the government controlling key sectors while private businesses drive innovation?

• Germany

• United States

• China

• Sweden