Economic Systems and Their Characteristics

The video introduces different types of economic systems: traditional, command, market, and mixed. It explains how scarcity leads countries to develop economic systems and the three basic economic questions they must answer. Traditional economies rely on customs and bartering, command economies are government-controlled, and market economies are driven by free enterprise. Most countries have mixed economies, combining elements of both command and market systems.

What is the fundamental problem that economic systems aim to address?

• Abundance of resources

• Technological advancement

• Scarcity of resources

• Equal distribution of wealth

What are the three basic economic questions every country must answer?

• Where to produce, when to produce, and how much to produce

• What to produce, how to produce, and who will consume

• How to produce, where to produce, and who will sell

• Who will produce, what to produce, and how to distribute

In a traditional economy, how are goods typically exchanged?

• With credit cards

• Via online platforms

• Through bartering

• Using digital currency

Which of the following is an example of a traditional economy?

• United States

• United Kingdom

• Inuit in Canada

• Australia

Which of the following is a characteristic of a command economy?

• Government control over all economic decisions

• Decisions made by private citizens

• Bartering system

• Free market competition

Which countries are known for having a command economy?

• Brazil and Argentina

• Australia and New Zealand

• Cuba and North Korea

• United States and Canada

What is a potential downside of a purely free market economy?

• Lack of safety regulations for goods

• Government intervention in pricing

• High taxes on businesses

• Limited consumer choices

In a market economy, who primarily makes the economic decisions?

• Local communities

• Private citizens

• International organizations

• The government

Which type of economy combines elements of both command and market systems?

• Traditional economy

• Command economy

• Mixed economy

• Market economy

What is a common feature of most democratic countries' economies?

• Pure command economy

• Pure market economy

• Mixed economy

• Traditional economy