Economic Systems Comparison Quiz

How does a traditional economy typically decide what goods and services to produce?

• Through government planning and directives

• Based on customs, traditions, and beliefs

• By consumer demand and market trends

• By the availability of natural resources

In a command economy, who primarily determines how goods and services are produced?

• Individual entrepreneurs

• The government

• Private corporations

• Consumer preferences

Which economic system relies on supply and demand to determine for whom goods and services are produced?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Analyze how a traditional economy might respond to a natural disaster affecting its primary resources.

• By increasing imports to meet demand

• By relying on community support and shared resources

• By seeking government intervention

• By adjusting prices to balance supply and demand

Tags

NGSS.HS-ESS3-1

Evaluate the effectiveness of a command economy in rapidly mobilizing resources during a national crisis.

• It is ineffective due to lack of flexibility

• It is effective due to centralized control

• It is effective because of market-driven responses

• It is ineffective because of reliance on tradition

Tags

NGSS.HS-ETS1-3

In a market economy, what role do prices play in determining how goods and services are produced?

• Prices have no role; production is based on tradition

• Prices guide producers to allocate resources efficiently

• Prices are set by the government to control production

• Prices are irrelevant; production is based on quotas

Compare the decision-making process in a traditional economy with that in a market economy regarding what to produce.

• Both rely on government directives

• Traditional relies on customs; market relies on consumer demand

• Both rely on consumer demand

• Traditional relies on market trends; market relies on customs

How might a command economy address the issue of unemployment?

• By allowing market forces to create jobs

• By implementing government job programs

• By relying on traditional job roles

• By encouraging entrepreneurship

Assess the impact of consumer choice in a market economy on the variety of products available.

• Limited variety due to government control

• Wide variety due to consumer demand

• Limited variety due to traditional practices

• Wide variety due to government quotas

In what way does a traditional economy ensure that goods are produced for the community?

• Through market competition

• By following cultural practices and needs

• By government allocation

• By consumer purchasing power