#1
Which of the following best describes a traditional economy?
Decisions are made by individuals and businesses.
Government controls most aspects of the economy.
Economic decisions are based on customs, traditions, and beliefs.
Economic decisions are made through democratic processes.
#2
In a market economy, what primarily determines what goods and services are produced?
Government directives
Consumer demand and preferences
Traditions and customs
Producers' goals
#3
In a free market economy, prices are primarily determined by:
Government regulations
Supply and demand
Producers' costs
Consumer preferences
#4
Which economic system relies on supply and demand to determine production, distribution, and pricing of goods and services?
Mixed economy
Command economy
Market economy
Traditional economy
#5
What is a characteristic of a mixed economy?
Government controls all economic activities
Private ownership of all resources
Market forces determine all economic decisions
Both private enterprise and government involvement in economic activities
#6
What is a common characteristic of all economic systems?
Equal distribution of wealth
Private ownership of all resources
Scarce resources
Unlimited wants and needs
#7
What is a key characteristic of a command economy?
Private ownership of property
Decentralized decision-making
Government ownership of resources and centralized planning
Market forces determining prices
#8
Which economic system aims to minimize government intervention and maximize individual freedom?
Command economy
Market economy
Mixed economy
Traditional economy
#9
What is the primary role of the government in a mixed economy?
To control all economic activities
To minimize its involvement in the economy
To regulate certain aspects of the economy while allowing market forces to operate
To completely delegate economic decision-making to private individuals
#10
Which economic system is characterized by a blend of market forces and government intervention?
Traditional economy
Command economy
Market economy
Mixed economy
#11
Which economic system is most commonly associated with socialist principles?
Market economy
Mixed economy
Traditional economy
Command economy
#12
What is a disadvantage of a traditional economy?
Rapid economic growth
Lack of flexibility to adapt to changing circumstances
High level of government intervention
Equal distribution of wealth
#13
What is a major criticism of a pure market economy?
Inefficiency in resource allocation
Lack of incentives for innovation
Excessive government control
Unequal distribution of wealth
#14
What is a primary advantage of a command economy?
Efficient resource allocation
High level of consumer choice
Low income inequality
Ability to quickly mobilize resources for national priorities
#15
Which economic system tends to have the highest level of income equality?
Market economy
Mixed economy
Command economy
Traditional economy