Economic Systems and Decision Making

The video introduces key economic questions every country must answer: what to produce, how to produce, and for whom. It explains three types of economic systems: traditional, command, and market economies. Traditional economies rely on customs and bartering, command economies are government-controlled, and market economies are driven by supply and demand. The video also discusses the economic continuum, illustrating how countries like North Korea and the USA differ in economic freedom.

What are the three fundamental economic questions every country must answer?

• How to save, where to save, and when to save

• Where to produce, when to produce, and why to produce

• What to consume, how to consume, and who to consume with

• What to produce, how to produce, and who to produce for

In a traditional economy, how do people typically acquire goods and services?

• By trading stocks

• Through bartering

• With credit cards

• Using money

Which of the following is a characteristic of a traditional economy?

• High use of technology

• Government control of resources

• Economic decisions based on customs

• Free market competition

Who makes the economic decisions in a command economy?

• The government

• Individual consumers

• Private businesses

• International organizations

What is another name for a command economy?

• Mixed market

• Traditional market

• Free market

• Communist market

In a market economy, what primarily drives economic decisions?

• International trade agreements

• Cultural traditions

• Supply and demand

• Government policies

What is a potential risk of a pure market economy?

• High taxes

• Lack of innovation

• Overregulation

• No government control over food safety

Why are there no pure market economies in the world?

• Because of the need for some government regulation

• Due to lack of resources

• Due to international laws

• Because of cultural differences

Where does North Korea fall on the economic continuum?

• Near the traditional end

• Very close to pure command

• In the middle

• Near the market end

Which countries are near the market end of the economic continuum?

• North Korea and China

• Canada and the United States

• Russia and Cuba

• India and Brazil