1. Match the economic system to the correct description. (One description for each economic type)

Question

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3 points
Command Economy Market Economy Mixed Economy
economy in which the central government makes all basic economic decisions
an economy in which individual consumers and producers make all economic decisions
economy that combines elements of traditional, market, and command economic systems
economy in which the central government makes all basic economic decisions
an economy in which individual consumers and producers make all economic decisions
economy that combines elements of traditional, market, and command economic systems

Answer 1

Command Economy: Economy in which the central government makes all basic economic decisions.

Market Economy: An economy in which individual consumers and producers make all economic decisions.

Mixed Economy: Economy that combines elements of traditional, market, and command economic systems.