QUIZ 6.2: ECONOMIC SYSTEMS REVIEW

THE BIG 3 ECONOMIC QUESTIONS ADDRESS WHICH NEEDS?

• WHAT TO IMPORT, WHERE TO IMPORT IT, AND HOW MUCH TO CHARGE FOR IT

• WHAT TO TAX, HOW MUCH TO TAX, AND WHAT TO EXCLUDE

• WHAT TO PRODUCE, HOW TO PRODUCE IT, AND WHO TO PRODUCE IT FOR

• WHAT TO EXPORT, WHERE TO SHIP IT, AND WHEN TO EXPORT

In a command economy, many basic needs like health care, jobs, and education, are determined and provided by the central government, but...

• individual freedom is very limited

• taxes are low

• there is a lot of crime

• public safety is limited

Living off the land, trading items and tools instead of money, and having a community's decisions about food and resources determined by custom and tradition, are features of...

• command economies

• market economies

• mixed economies

• traditional economies

Prices and brand decisions may be determined by popularity with customers. Businesses also determine their policies without much interference from the government. But there is risk of failure and unemployment.

• Command Economy

• Market Economy

• Mixed Economy

• Traditional Economy

An economic system is...

• the way a country determines its judicial system

• the way a country appoints its political leaders

• the way a country determines its relationship between federal and state governments

• the way a country organizes its resources and produces goods and services