Economics in Europe

Decisions about what, how, and for whom to produce are determined by cultural traditions. (traditional economy, market economy, or command economy)

Decisions about what, how, and for whom to produce are determined by the government. (traditional economy, market economy, or command economy)

Decisions about what, how, and for whom to produce are determined by supply and demand. (traditional economy, market economy, or command economy)

Most countries have mixed economies rather than being purely market or purely command.

• True

• False

A command economy is when the government owns the land, factories, and businesses of the country.

• True

• False

A market economy is when the government allows supply and demand to control market prices.

• True

• False

A market economy is when the government strictly controls the price of certain goods.

• True

• False

An entrepreneur is a person who takes risks to start a business.

• True

• False

The United Kingdom has a mixed economy that is very close to a pure market economy.

• True

• False

Germany's mixed economy has many market elements, and its citizens and private companies have a high level of economic freedom.

• True

• False