Economic System

What is one benefit of a mixed economy over a pure market economy?

• In a mixed economy, the market determines all prices and goods are produced as efficiently as possible.

• In a mixed economy, taxes are often very low because the government does not provide any public goods.

• In a mixed economy, government regulations can reduce the negative effects of business activities such as pollution.

• In a mixed economy, the government is able to allocate all resources and make sure that they are used efficiently.

Which situation is likely to occur in a pure command economy?

• The government owns all businesses.

• People refuse to trade with each other.

• There are strong private property protections.

• There are few obstacles to starting businesses.

In some small communities, people do not produce a surplus of goods to sell. They harvest enough food to sustain themselves and their families. They use excess to barter for things they cannot produce on their own. The economy described in the text is MOST LIKELY which of the following?

• a mixed economy

• a traditional economy

• a market economy

• a command economy

Select the correct word to complete the statement. Since the 1980s, Turkey has been moving from a government-directed economy toward more private ownership. Turkey is moving toward a _____________ economic system.

• traditional

• comket

• command

• mixed

In what way do mixed economies reflect elements of both market and command economies?

• Both the prices of goods and the workers' income are determined by market forces.

• Both the public and private sectors play important roles in directing economic activity.

• Both consumers and producers are told what to do by the government.

• Both large and small businesses are competitive in most markets.

Which people MOST LIKELY live in a country with a traditional economy? Select all that apply.

• Jeremy only grows enough food on his farm to feed himself and his family. Fareed works as a fisherman just like his father and grandfather before him.

• Sasha determines the types of clothing she sells based on consumer demand.

• Hakim opens a coffee shop in his hometown and is able to quickly earn a profit.

• Amira is placed in a job with a government-run oil and natural gas company.

What does it cost to produce a pair of Jordan shoes in China?

• $45

• $250

• $16

• $23

Generally, "mixed economy" means an economy that

• relies on the use of currency as well as bartering

• has both command and market elements.

• relies only on supply and demand to determine production.

• has a large industrial sector and a large agricultural sector.

What is the biggest factor or factors affecting the answers to these questions in a traditional economy?

• custom and habit

• popular votes

• supply and demand

• government planning

What is the biggest factor or factors affecting the answers to these questions in a market economy?

• popular votes

• custom and habit

• government planning

• supply and demand