Unit 2: Economic Systems and Decision Making

The four types of economic systems are:

• Traditional, Command, Mixed, & Market

• Traditional, Command, Combined, & Market

• Communism, Capitalism, Free Market, and Macroeconomics

Which of the following is an economic system in which economic decisions are made according to social roles & culture?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

Which of the following is an economic system in which a central, governmental authority decides how to use a country's scarce resources?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

Which of the following is an economic system in which the government and individuals are used to decide how to use scarce resources?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

An economy that combines elements of command and market economy is

• Market economy

• Command economy

• Traditional economy

• Mixed economy

Type of economy that is based on trading and bartering

• Command economy

• Market economy

• Traditional economy

How does a 'market economy' work?

• People conduct 'economic transactions' freely

• The government controls all 'economic transactions'

• Economic transactions' are secondary to environmental concerns

How does a 'command economy' work?

• People conduct 'economic transactions' freely

• The government controls all 'economic transactions'

• Economic transactions' are secondary to environmental concerns

Which one is not a disadvantage of traditional economy.

• Discourages new ideas

• Lack of progress

• Low standard of living

• No pollution

Which one is an advantage of command economy.

• No freedom to choose

• Low quality goods /no competition

• Low unemployment