Economic Systems Quiz

An economy in which most of the economic decisions that are made are based

on custom and on the habit of how such decisions were made in the past

• Traditional

• Command

• Market

• Mixed

Government planning groups make the basic economic decisions such as

which goods and services to produce, prices, and wage rates

• Traditional

• Command

• Market

• Mixed

An economy in which changes in prices guide what and how goods and

services will be produced, distributed, and consumed

• Traditional

• Command

• Market

• Mixed

An economic system in which decisions are all made on the basis of customs,

beliefs, religion, and habits

• Traditional

• Command

• Market

• Mixed

Sometimes called Free Enterprise which allows for private ownership of

businesses and property

• Traditional

• Command

• Market

• Mixed

Why are most economies referred to as “mixed economies”?

• There are not any traditional economic systems left.

• Government planners no longer have complete control over command systems. 

• Most countries have aspects of both market and command economies.

• Economic poverty is too great in a pure market system.

The government owns the means of production

• Traditional

• Command

• Market

• Mixed

An economic system that permits an open exchange of goods and services

between producers and consumers

• Traditional

• Command

• Market

• Mixed

An economic system based on individual choices and voluntary trade

• Traditional

• Command

• Market

• Mixed

An economic system in which social roles and culture determine how goods

are made, sold, and bought

• Traditional

• Command

• Market

• Mixed