Unit 3: Global Economic Systems

Which of the following definitions best describes an economic system?

• The intersection of supply and demand.

• The way a government structures an economy.

• The structure of methods and rules that a society uses to produce and distribute goods and services.

• The rules and methods that economists use to analyze an economy.

Which of the following is not one of the key economic questions that economies are trying to answer?

• What goods and services should be produced?

• How should goods and services be produced?

• Who should consume these goods and services?

• Where should goods and services be produced?

What does the traditional economic system revolve around?

• Shared nationality

• Free market exchange

• City life

• The family unit

In a free market, what two concepts come together to self-regulate the market?

• Competition and self-interest

• Competition and Sovereignty

• Self-Interest and Profit

• Self-Interest and Specialization

The United States is an example of which type of economic system?

• Command economy

• Traditional economy

• Free market economy

• Mixed economy

In a free market economy, who owns the factors of production?

• The government

• Individuals and privately owned businesses

• Large corporations

• Foreign firms

Who owns the factors of production in a command economy?

• Individuals and privately owned businesses

• Large corporations

• The government

• Foreign firms

Which economic system is most common throughout the world?

• Traditional economy

• Free market economy

• Command economy

• Mixed economy

Innovation plays a large role in advancing an economy toward which economic goal?

• Economic Security

• Economic Equity

• Economic Freedom

• Economic Growth

Free Market economies place a large emphasis on which of the following economic goals:

• Economic equity

• Economic security

• Economic freedom

• Economic destruction