Economic Systems and Their Characteristics

Miss Gooding discusses the major economic systems: market, command, and socialist. She explains how market economies rely on consumer choices and private businesses, while command economies are controlled by government decisions. Socialist economies aim to reduce wealth disparities through taxation and social programs. The video also highlights how most countries have mixed economies, with examples from around the world.

Which of the following is NOT a major economic system discussed in the video?

• Feudal Economy

• Command Economy

• Market Economy

• Mixed Economy

In a market economy, who primarily decides what goods should be produced?

• The government

• Consumers

• International organizations

• Non-profit organizations

What is a key characteristic of a market economy?

• Government sets prices

• Businesses compete to meet consumer demands

• All goods are distributed equally

• Production is based on tradition

In a command economy, who decides how goods should be produced?

• Consumers

• International trade organizations

• The government

• Private businesses

What is a potential downside of a command economy?

• High levels of competition

• Lack of motivation to work harder

• Excessive consumer choice

• Rapid economic expansion

How does a socialist economy aim to reduce the gap between rich and poor?

• By allowing free market competition

• By eliminating taxes

• Through government control of all businesses

• By taxing the rich more and funding social programs

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

• Prices are determined by supply and demand

• All businesses are privately owned

• Government provides services like healthcare and education

• No taxes are collected

Which country is described as having a largely capitalist economy with some socialist programs?

• North Korea

• Cuba

• United States

• Russia

What is a characteristic of mixed economies?

• They are purely market-based

• They do not involve any government intervention

• They are purely command-based

• They combine elements of both market and command economies

Which region is known for having many socialist countries with high tax brackets?

• Northern Europe

• South America

• Middle East

• Southeast Asia