Economic Systems and Their Characteristics

What is the main focus of economic geography?

• The study of Earth's physical features.

• The study of where and how people earn a living.

• The study of ancient civilizations and their trade routes.

• The study of how governments are formed.

What does political economy study?

• Only the political systems of countries.

• Only the economic systems of countries.

• How economic and political power interact and shape people's lives.

• The history of global trade routes.

Which of the following is an example of a primary economic activity?

• Manufacturing cars in a factory.

• Selling goods in a market.

• Mining for copper.

• Providing healthcare services.

What is a key characteristic of capitalism?

• All businesses are owned by the government.

• Wages and production are controlled by the government.

• It is dominated by earning profit through private business ownership and guided by the free market.

• It focuses on equal distribution of wealth for everyone.

What happened to countries like Bulgaria and East Germany after World War II, leading to the formation of the Iron Curtain?

• They became allies of Western European countries and adopted capitalism.

• They joined the Soviet Union and became communist states.

• They established democratic governments and free trade markets.

• They remained neutral and independent from major global powers.

What is the main goal of communism in theory?

• To promote private property and profit-based economies.

• To replace private property with public ownership and communal control of resources.

• To establish dictatorships led by a single powerful leader.

• To encourage uneven access to wealth and resources.

Which of the following is a characteristic of a planned economy, as seen in Bulgaria during its communist period?

• Decisions about production and prices are based on supply and demand.

• The government controls how much is produced, where, and at what price.

• Private businesses make all economic decisions.

• Access to wealth is always evenly distributed among the population.

Which of the following activities is considered part of the tertiary economic sector?

• Mining for coal.

• Manufacturing cars.

• Providing healthcare services.

• Logging timber from forests.