Basic Economic Terms

The economic system of communist countries is most closely related to which of the following:

• Command

• Market

• Traditional

• Mixed

Which of the following is NOT one of the basic questions that all economic systems must answer:

• What to produce

• How to produce

• How much to produce

• For whom to produce

In a command economy, economic decisions are made by the

• Consumers

• market

• government

• producers

Who owns the resources in a command economy?

• the government

• no one

• individuals

• private business

How are goods and services exchanged in a traditional economy?

• through prices and wages

• through government regulation

• through bartering

• through shortages and surpluses

Which of the following BEST describes a market system?

• The government provides services, such as telephones and television.

• A person can start any legal business and charge any price.

• The government provides food and housing to all workers.

• Businesses are owned by the government.

This is an economic system where people follow the occupation of their ancestors:

• Command

• Market

• Mixed

• Traditional

A market economy is very different from a command economic system or a traditional system. Which of the following is found in a market economy?

• Free labor

• Competition between businesses

• Government control of industry

• Government control of agriculture

An economic system that allows individuals to start businesses, but still has government regulations is

• Traditional

• Market

• Command

• Mixed

Most democratic countries today have which economic system?

• Traditional

• Market

• Command

• Mixed