Types of Economic Systems

The government decides what is made, how it is made, and who gets what. (e.g. Communism)

• 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

• Use of barter system

• High level of industrialization

• Government ownership of resources

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

• Individual consumers

• Private businesses

• Government

• International organizations

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

• Traditional

• Command

• Market

• Mixed

In a market economic system, prices are determined by:

• Government regulations

• Supply and demand

• Cultural traditions

• International agreements

Which of the following is a disadvantage of a command economic system?

• Lack of government intervention

• Inefficient resource distribution

• High competition

• Rapid technological advancement

What is a mixed economic system?

• An economy with no government intervention

• An economy that combines elements of market and command systems

• An economy based solely on agriculture

• An economy where all resources are privately owned

Which type of economic system is most likely to have a high level of government control over resources?

• Market

• Traditional

• Command

• Mixed

In which economic system are resources allocated based on customs and traditions?

• Market

• Traditional

• Command

• Mixed

Which economic system is characterized by private ownership and voluntary exchange?

• Command

• Market

• Traditional

• Mixed