Economic Systems

What is a command economy?

• An economy with complete private ownership

• An economy with no government intervention

• An economy where the market dictates production and distribution

• An economy where the government controls the factors of production

Which country is a good example of a command economy during the 20th century?

• Germany

• Soviet Union

• China

• United States

In a command economy, who owns the factories and farms?

• The government

• Local communities

• International organizations

• Private individuals

How are production targets determined in a command economy?

• By international trade agreements

• By individual choice

• By government planning

• By market demand

In a command economy, who allocates the output of production?

• The market

• Private companies

• International organizations

• The government

What is a key characteristic of a market economy?

• Centralized planning

• Competition and innovation

• Equal distribution of resources

• Government control of production

In a market economy, who determines what to produce?

• The government

• International organizations

• Local communities

• Individual consumers

What motivates innovation in a market economy?

• International trade agreements

• Government regulations

• Competition and incentives

• Centralized planning

What is a common argument in favor of command economies?

• Fairness and equality

• Market demand and supply

• Incentives for individuals

• Competition and innovation

What is a key advantage of a market economy?

• Equal distribution of resources

• Innovation and productivity

• Centralized planning

• Government control of production