ME_05_Politics and Economics (SS7CG3, SS7E4, SS7E5, SS7E6)

An economic system is a way in which people decide to organize the production, distribution, and consumption of goods and services.

• true
• false

What, how, and for whom to produce are the basic economic questions that every society must answer.

• true
• false

All societies answer the three basic questions in the same way.

• true
• false

Most societies have some type of mixed economy.

• true
• false

In a market economy, only the government decides what goods are produced.

• true
• false

In a command economy, the government decides how the goods will be produced and distributed.

• true
• false

In a command economy, consumer purchasing decides what goods and services are produced.

• true
• false

In a market economy, decisions regarding production and consumption result from the interaction of consumers and producers.

• true
• false

In a traditional economy, custom and habit determine economic decisions.

• true
• false

Tax on imported goods is ___________

• a tariff
• a quota
• an embargo
• the reason we can't have nice things