Economic Systems Quiz

Which of the following is a key question every economic system must answer?

• How to increase exports?

• What to produce?

• How to reduce taxes?

• What is the role of technology?

In a traditional economy, what is more important than money?

• Technology

• Customs, traditions, and beliefs

• Government policies

• International trade

What type of activities are common in a traditional economy?

• Manufacturing and industrial production

• Farming, hunting, fishing, or gathering

• Digital marketing and e-commerce

• Financial services and banking

What is a major strength of a traditional economy?

• Rapid technological advancement

• High levels of innovation

• Stability and sustainability

• Strong international trade relations

What is a significant weakness of a traditional economy?

• Limited innovation and growth

• High levels of unemployment

• Excessive government control

• Over-reliance on technology

In a command economy, who makes all the economic decisions?

• Private businesses

• Individual consumers

• The government

• International organizations

In a mixed economy, what is combined?

• Private and public enterprise

• Command and traditional systems

• Market and traditional systems

• Only private enterprise

What is a characteristic of a market economy?

• Decisions made by the government

• Decisions made by individuals and businesses

• Lack of consumer choice

• Large-scale planning

What is a common effect of implementing a price ceiling?

• Surpluses

• Increased quality of goods/services

• Shortages

• Higher prices

The Communist country ​ (a)   believes in common ownership of wealth and businesses.

• China
• Bolivia
• USA