WorksheetsAsia Economic Systems
Total questions: 33
Worksheet time: 17mins
Which set lists the three fundamental economic questions?
What to regulate, what to subsidize, what to tax
How to save, how to invest, how to borrow
Who governs, who trades, who pays taxes
What to produce, how to produce, for whom
In a traditional economy, what primarily guides production and consumption decisions?
Central plans set by government ministries
International trade agreements and tariffs
Profit signals from competitive markets
Customs and beliefs passed through generations
Which characteristic best defines a command economy?
Government regulates all major economic decisions
Private firms compete with minimal oversight
Households decide based on inherited customs
Prices and wages set by supply and demand
A market economy answers the three economic questions based on which mechanism?
Religious authority allocating resources
Five-year state production directives
Voluntary exchanges guided by supply and demand
Traditions and elders’ communal decisions
Match each economic system to its defining feature.
Traditional
Customs and beliefs guide choices
Command
Government control of decisions
Market
Supply and demand set outcomes
Which outcomes are commonly associated with command economies?
Policies can be harsh to live under
Examples include former Soviet Union
All decisions left to tradition alone
Pure command systems are widespread today
Government sets prices and wages
Which scenario illustrates a traditional economy?
A trade bloc negotiates tariff reductions
Entrepreneurs respond to changing market prices
A national agency assigns production quotas
A rural village follows ancestors’ methods
Which statement about market economies is most accurate?
Wages are fixed by a central authority
Government plans regulate all production targets
Prices emerge from buyers and sellers’ choices
Elders decide what goods the community makes
Which statement best describes a mixed economy?
Government sets all prices and outputs
Private markets operate with no government role
Economy combines market forces with government involvement
Citizens collectively plan all production decisions
Why are there no pure market economies?
Consumers refuse to buy goods without brands
Governments always regulate safety and fairness
Firms cannot produce without subsidies
Prices cannot be set without central planning
In a truly free market economy, what would most likely occur?
Government-owned firms dominate all sectors
Workers protected by comprehensive labor laws
No laws to ensure goods and services are safe
Strictly controlled prices by ministries
Most democratic countries are classified as mixed because they have characteristics of both command and market systems. Which feature reflects the market side?
Government determining output quotas
Private firms competing for consumers
State ownership of all heavy industry
Central planners assigning jobs nationwide
Which region includes economies closer to command due to government-owned industries and controlled prices?
Southern and Eastern Asia overall
South Korea and Japan specifically
Sub-Saharan Africa generally
North America broadly
China’s current economic system can be summarized as which of the following?
Pure command under strict central planning
Mixed with significant market elements
Pure market with minimal regulation
Traditional based on customs and barter
Which change shows China’s transition toward a market-leaning system?
Raising money through stock market investments
Maintaining collective farming nationwide
Keeping all prices fixed by the state
Letting private companies take over industries
Allowing farmers to make crop decisions
Despite liberalization, which area in China remains largely state-owned?
Independent farming cooperatives
Retail and small restaurants
Banking and oil sectors
Private technology startups
What effect has encouraging competition among businesses in China had?
Reduced innovation and output
Economic growth and efficiency gains
Eliminated all government revenue
Increased reliance on central planning
Which statement best describes India’s recent economic growth?
Rapid growth after reduced government control
Slow growth due to continued command economy
Decline caused by shrinking educated workforce
Stable growth led by extensive state ownership
In India, which policy tool raises prices on foreign products to protect domestic industries?
Price ceilings on staples
Currency devaluation
Subsidies for exports
Tariffs on imported goods
Match each country with the economic characteristic described.
India
High tariffs and subsidies influence private sector
Japan
Mixed-market system with supply and demand guiding prices
Both
Private ownership with government still partially involved
Which factors characterize Japan’s post–World War II economic development?
Citizens and businesses own much of land and factories
Economy remained crushed for decades
Modernized economy emphasizing market ideas
Mixed market about 70% free, 30% command
What is a continuing challenge despite India’s transition toward a market system?
Complete removal of state-run industries
Full price control by central planners
Trade surplus consistently expanding
Many millions still live in poverty
Which feature best characterizes North Korea’s economic system?
Mixed economy balancing market and state
Predominantly free-market with minimal controls
Fully command system with centralized decisions
Traditional system based on customs
In North Korea, who makes decisions about what to produce and for whom?
Independent entrepreneurs and investors
Central government authorities
Local cooperatives and unions
Private firms responding to demand
Identify a consequence of North Korea’s heavy government control on economic growth since the early 1990s.
Stable agricultural surpluses
Rapid diversification of industries
No positive economic growth reported
Sustained positive growth and innovation
Which description fits North Korea’s property and resource ownership?
Government owns almost all property
Property is largely privately owned
Communes lease land to smallholders
Foreign corporations hold key assets
Which priority of investment contributes to outdated factories and equipment in North Korea?
Heavy investment in the military
Public–private manufacturing partnerships
Subsidies for private technology
Foreign direct investment inflows
Which factor limits foreign business activity in North Korea?
Low corporate taxes encourage entry
Government blocks most foreign investment
Open capital markets attract firms
Trade agreements require market access
Which label best describes South Korea’s economic system today?
Mixed system leaning free market
Traditional agriculture-focused economy
Fully command with state ownership
Anarchic laissez-faire system
Which outcome is associated with South Korea’s partnerships with private firms?
Rapid economic growth across industries
Decline in industrial capacity overall
Long-term stagnation of exports
Collapse of domestic entrepreneurship
Which statement best captures business freedom in South Korea?
Firms set prices with little interference
Prices are fixed by central planners
Entrepreneurship is illegal nationwide
Foreign trade is broadly prohibited
Which policy tool does South Korea use to fund services and infrastructure?
Tariffs on all imports only
Taxes on businesses and citizens
Mandatory price controls nationwide
Sovereign wealth dividends
Which comparison distinguishes the two Koreas’ economic freedom? Select two.
North Korea’s economy is mostly free
South Korea ranks high in business freedom
South Korea bans entrepreneurship
North Korea has minimal private role
