Exploring Global Economic Systems

The video explores three major economic systems: market, command, and mixed economies. It discusses how each system answers fundamental economic questions, their advantages and disadvantages, and provides examples of countries that employ these systems. The video concludes that most modern economies are mixed, combining elements of both market and command systems, and highlights the connection between economic systems and political ideologies.

What are the three fundamental questions that an economic system answers?

• Who controls the resources, how are they allocated, and what is the outcome?

• What is the cost, who pays for it, and how is it distributed?

• What do we produce, how do we produce it, and who receives it?

• What is the demand, how is it supplied, and who benefits?

In a pure market economy, who owns all productive activities?

• Private individuals

• International corporations

• The government

• Non-profit organizations

Which of the following is NOT an advantage of a market economy?

• Efficient allocation of resources

• Innovation and economic growth

• Absence of public goods

• More choices for consumers

What is a major disadvantage of a market economy?

• Limited consumer choices

• High levels of government intervention

• Lack of competition

• Monopolies

In a command economy, who determines what goods should be produced and at what price?

• The government

• Market forces

• Private companies

• Consumers

Which of the following is an advantage of a command economy?

• High levels of innovation

• Efficient resource allocation

• Less inequality

• More consumer choices

What is a significant disadvantage of a command economy?

• Lack of competition

• Rapid economic growth

• High unemployment levels

• Excessive consumer choices

Which of the following is a feature of a mixed economy?

• No government intervention

• All sectors are state-owned

• All sectors are privately owned

• Certain sectors are left to private ownership while others have significant state ownership

Why did the US government take an 80% stake in AIG in 2008?

• To reduce unemployment

• To nationalize the insurance industry

• To prevent it from collapsing

• To increase competition

What is the relationship between economic systems and political ideologies?

• They are completely independent

• Economic systems determine political ideologies

• Political ideologies influence the choice of economic systems

• There is no clear relationship