Economic Systems

What is the main characteristic of a free market capitalist economy?

• Absence of government intervention

• Government control and regulation.

• Limited competition.

• Equal distribution of wealth.

In a command economy, who makes the decisions regarding production and distribution?

• Consumers and market forces

• Government or central authority

• Workers and labor unions

• Private businesses and corporations

Which economic system allows for private ownership of resources and businesses?

• socialism

• communism

• feudalism

• capitalism

What is the role of government in a free market capitalist economy?

• The role of government is to control and regulate all aspects of the economy.

• The role of government is to provide financial support and subsidies to businesses.

• The role of government is to provide a legal framework, enforce property rights, regulate contracts, protect consumers and workers, and maintain competition.

• The role of government is to determine prices and allocate resources in the market.

What is the primary goal of a command economy?

• Free market competition and individual decision-making.

• Government control and direction of economic activities

• Equal distribution of wealth and resources.

• Private ownership and profit maximization.

Which economic system relies on supply and demand to determine prices?

• planned economy

• market economy

• mixed economy

• command economy

In a command economy, who determines the allocation of resources?

• businesses

• market forces

• individuals

• government

What is the main advantage of a free market capitalist economy?

• Increases income inequality.

• Promotes competition and innovation

• Leads to monopolies and price fixing.

• Limits consumer choices and variety.

What is the main disadvantage of a command economy?

• Inefficient allocation of resources.

• Lack of economic growth and development.

• Limited innovation and competition.

• Lack of individual freedom and choice

Which economic system promotes competition and innovation?

• mixed economy

• traditional economy

• command economy

• market economy