Types of Economic Systems

an economic system in which prices are determined by unrestricted competition between privately owned businesses.

• Economics

• market equilibrium

• Centrally Planned Market

• Free Market

• Mixed economy

Which of the following is a characteristic of a traditional economic system?

• Centralized decision-making

• Barter trade

• High technology usage

• Market-driven prices

In a command economic system, who primarily makes the economic decisions?

• Individual consumers

• Government

• Private businesses

• International organizations

What is a key feature of a market economic system?

• Government ownership of resources

• Price determined by supply and demand

• Fixed pricing by authorities

• Resource allocation by tradition

Which economic system is most likely to encourage innovation and entrepreneurship?

• Traditional

• Command

• Market

• Mixed

In a mixed economic system, which sectors are typically controlled by the government?

• All sectors

• None

• Only the private sector

• Public services like healthcare and education

What is the primary goal of a command economic system?

• Maximize individual wealth

• Achieve economic equality

• Encourage competition

• Promote consumer choice

Which of the following is an example of a country with a market economic system?

• North Korea

• United States

• Cuba

• China

How does a traditional economic system typically handle resource allocation?

• Through government planning

• Based on customs and traditions

• By market forces

• Using advanced technology

What is a disadvantage of a command economic system?

• Lack of government intervention

• Inefficient resource distribution

• Excessive competition

• Unpredictable market fluctuations