Economies Quiz

What type of economy relies on customs, traditions, and beliefs to decide what to produce, how to produce it, and for whom to produce?

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

In which type of economy does the government make all the decisions regarding what goods and services to produce, how to produce them, and who receives them?

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy

Which economic system is characterized by private property, free-market competition, and profit as the main incentive?

• Capitalism

• Communism

• Traditional Economy

• Command Economy

In which type of economy do supply and demand determine the prices of goods and services?

• Command Economy

• Traditional Economy

• Market Economy

• Mixed Economy

What is a key feature of a mixed economy?

• It relies solely on traditional customs to make economic decisions.

• The government owns and controls all means of production.

• It incorporates elements of both market and command economies.

• It prohibits private property.

Which economic system aims at eliminating private property to achieve equality and distribute wealth equally among all citizens?

• Capitalism

• Communism

• Traditional Economy

• Market Economy

In a traditional economy, how are economic roles like farming or hunting typically assigned?

• By government officials

• Through competitive exams

• Based on family lineage and tradition

• Through a bidding process

What is a disadvantage of a command economy?

• It can lead to a lack of innovation due to government control.

• It relies too much on ancient traditions.

• It allows for too much competition.

• It encourages too much private ownership.

Which of the following is NOT a characteristic of a market economy?

• Government intervention in economic decisions

• Private property rights

• Voluntary exchange in markets

• Competition and consumer choice

How does a mixed economy address the issue of economic equity?

• By allowing the market to operate freely without any government intervention

• By relying solely on traditional customs and beliefs

• By combining government intervention with free-market principles to protect vulnerable groups

• By abolishing private property and distributing resources equally