Econ Unit 1 Review

Front

What is the primary characteristic of a command economy?

Back

Government dictates production and distribution

Front

In a traditional economy, which of the following is most likely true?
Options:
Innovation drives production decisions
Custom and history influence resource allocation
Governments heavily regulate markets
Income inequality is a defining feature

Back

Custom and history influence resource allocation

Front

Which of the following best describes a mixed economy? A) A balance between market freedom and government intervention, B) A system focused solely on private ownership, C) No government involvement in the economy, D) High degree of poverty and reliance on traditions

Back

A balance between market freedom and government intervention

Front

Which of the following economic systems is characterized by laissez-faire policies? Traditional Economy, Command Economy, Free Market Economy, Mixed Economy

Back

Free Market Economy

Front

Which of the following is a con of market economies? High degree of predictability and security, Lack of competition, Increased income inequality, Governmental control of resources

Back

Increased income inequality

Front

What is a significant drawback of a command economy?

Back

Denial of basic human rights and freedoms

Front

The concept of "Circular Flow" in a market economy involves interactions between which entities?

Back

Households and firms

Front

Why do traditional economies typically exhibit lower life expectancy?

Back

Little change or innovation in production methods

Front

Why might competition in a market economy be considered a harmful force?

Back

It leads to higher income inequality

Front

Which of the following is a key feature of a mixed economy? Complete reliance on market forces, Strict adherence to traditional values, No private property

Back

Balance between private and government ownership