Types of Economy

How many types of economies are there?

• 3
• 5
• 4
• 2

A command economy would BEST be placed at which point on the diagram?

• Point A

• Point B

• Point C

• Point D

Which point on the diagram BEST represents a free market/free enterprise economy

• Point A

• Point B

• Point C

• Point D

Regulating and taxing businesses but generally allowing businesses to make their own decisions is a characteristic of what type of economy?

• Command

• Mixed

• Free Market

• Traditional

The government makes the basic economic decisions such as which goods and services to produce, prices, and wage rates.

• Traditional

• Command

• Market

An economy in which changes in prices and consumer demand guide what and how goods and services will be produced, distributed, and consumed

• Traditional

• Command

• Market

An economic system in which decisions are all made on the basis of customs, beliefs, religion and habits.

• Traditional

• Command

• Market

Sometimes called Free Enterprise which allows for private ownership of businesses and property

• Traditional

• Command

• Market

Each member of society knows in early life what her or his role will be because jobs are handed down from generation to generation

• Traditional

• Command

• Market

An economic system that allows an open exchange of goods and services between people

• Traditional

• Command

• Market