Exploring Economic and Political Systems

Which of the following is an example of an economic system?

• Democracy

• Capitalism

• Monarchy

• Dictatorship

What is the main purpose of a political system?

• To produce goods and services

• To organize government and make laws

• To trade with other countries

• To create money

Which term describes a government ruled by a king or queen?

• Democracy

• Monarchy

• Oligarchy

• Republic

In which economic system does the government control most of the resources and businesses?

• Capitalism

• Socialism

• Traditional

• Market

Which of the following is a feature of a democracy?

• One person makes all the decisions

• Citizens have the right to vote

• Businesses are owned by the government

• There are no laws

Which economic system is based on customs, traditions, and beliefs?

• Market economy

• Command economy

• Traditional economy

• Mixed economy

Which of the following best describes a mixed economy?

• Only the government makes economic decisions

• Only individuals make economic decisions

• Both the government and individuals make economic decisions

• No one makes economic decisions

Compare a dictatorship and a democracy. Which statement is true?

• In a dictatorship, citizens have more freedom than in a democracy.

• In a democracy, leaders are chosen by the people, while in a dictatorship, one person has all the power.

• Both systems allow everyone to vote for leaders.

• In both systems, there are no laws.

Which of the following is an example of how a government can influence an economic system?

• By setting prices for goods

• By growing crops

• By inventing new products

• By teaching in schools

Why might a country choose to have a mixed economy instead of a pure market or command economy?

• To allow both government and individuals to have a role in the economy

• To make sure only the government controls everything

• To prevent any private businesses from existing

• To avoid making any economic decisions