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Command, Free Market, Mixed,

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is a Command Economy?

a)

CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

b)

An economic system COMBINING private and public enterprise.

c)

When production, investment, price, and income are determined centrally by a GOVERNMENT.

d)

A system that relies on customs, history, and time-honored beliefs.

2.

What countries have a Command Economy?

a)

Iceland, Sweden, France, Australia

b)

United States, Russia, Africa, Haiti

c)

India, United Kingdom, Brazil

d)

North Korea, Cuba, Soviet Union, China, Vietnam

3.

What is one advantage of a Command Economy?

a)

Individual freedom for everyone

b)

Health and public services are available to everyone at little or no cost.

c)

The government rarely interferes.

d)

Able to adjust to change gradually

4.

What is one disadvantage of a Command Economy?

a)

Requires large bureaucracy, which consumes resources

b)

Lower standard of living

c)

Does not produce enough public goods

d)

Workers and businesses face uncertainty as a result of competition and change.

5.

A command economy is also known as a:

a)

Free enterprise system

b)

Consumer-driven economy

c)

Prosperous economy

d)

Planned economy

6.

Command economies are usually dominated by:

a)

Free enterprise

b)

Traditions, customs, and beliefs

c)

State-owned enterprise

d)

All of the above

7.

The main strength of a command economy is that it can change direction drastically in a relatively short time:

a)

False

b)

True

8.

A command economy gives people the motivation to work hard:

a)

True

b)

False

9.

An economic system in which people are free to start their own businesses or to do whatever work they want. Also called capitalism or free market system

a)

Bank Account

b)

Free Enterprise System

c)

Trade Agreement

10.
Individuals who come up with a new idea for a good or service, then they make it a reality
a)
resource
b)
human resources
c)
consumer
d)
entrepreneur
11.

A Market Economy is based on?

a)

Goods and Services

b)

Goods and Products

c)

Supply and Demand

d)

Service

12.

A mixed economy combines the best parts of which other economies? This question has two correct answers.

a)

Market and Command

b)

Traditional and Market

c)

Command and Traditional

d)

Socialism and Capitalism

13.

This characteristic of a mixed economy states that the vast majority of labor, resources, and capital goods are owned by individuals rather than by the government.

a)

Private Property

b)

Freedom of enterprise and choice

c)

Motive of Self-Interest

d)

Competition

14.

This characteristic states that the Invisible Hand is the driving force of a Mixed Economy.

a)

Private Property

b)

Freedom of enterprise and choice

c)

Motive of Self-Interest

d)

Competition

15.

This characteristic of a Mixed Economy describes the natural rivalry created when two businesses offer the same, or similar, goods.

a)

Competition

b)

Freedom of Enterprise and Choice

c)

Private Property

d)

Motive of Self-Interest

16.
What is the best measure of the economic well-being of a country?
a)
net worth
b)
GDP
c)
open market value of goods
d)
the daily stock market performance
17.
A _______________ is an exclusive right to a new product or invention for a number of years.
a)
copyright
b)
patent
c)
incentive
d)
legal equality
18.
A _______________ is an exclusive right to publish or sell a piece of written material (ex. need permission to produce a movie based on a book).
a)
copyright
b)
patent
c)
invention
d)
incentive
19.

When I say Gross Domestic Product what am I talking about?

a)

Disgusting Home Things

b)

Total value of goods and services produced by a country

c)

Big measure of stuff made in the world

d)

I don't know

20.

What is income inequality?

a)

When someone doesn't get paid the right amount.

b)

When a few people get the most money.

c)

When people only work part-time.

d)

I don't know