Economic Systems Quiz

What is an economic system?

• A way to make money

• The distribution of natural resources

• A country's method of managing production, distribution, and consumption

• A type of government

Which of the following is NOT one of the three basic questions economic systems address?

• What to produce?

• How to produce?

• For whom to produce?

• When to produce?

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

• Through online shopping

• By producing their own goods and bartering

• From government distribution centers

• At large supermarkets

Which economic system is most affected by natural disasters?

• Market economy

• Command economy

• Mixed economy

• Traditional economy

What is a characteristic of a market economy?

• Government control of all production

• Reliance on customs and beliefs

• Freedom of individual choice in products and services

• Limited trade with other regions

In a command economy, who decides what goods to produce?

• Consumers

• Private businesses

• The government

• International organizations

Which country is known for having a free market economy?

• Cuba

• China

• New Zealand

• Russia

What is the main purpose of government control in a command economy?

• To increase profits

• To achieve social and political stability

• To promote international trade

• To reduce taxes

What is the term for an economic system that combines aspects of market and command economies?

• Capitalism

• Communism

• Mixed economy

• Bartering system

In a traditional economy, what determines the jobs people have?

• Government assignments

• Personal choice

• Market demand

• Customs and family traditions