Question

1. Which economic system answers the questions what, how, and for whom based on customs, traditions, and rituals?
o A) Command
o B) Market
o C) Traditional
o D) Mixed
2. In a command economy, who decides what goods and services will be produced?
o A) Consumers
o B) Government
o C) Private businesses
o D) Market forces
3. Which economic system allows private individuals to own property and make decisions based on supply and demand?
o A) Tradition-based
o B) Command
o C) Market
o D) Mixed
4. A country with a mixed economy located closer to a pure market economy likely has:
• A) Low government intervention
• B) High government intervention
• C) No private ownership
• D) Strict price controls
5. Which economic system features significant government control and planning?
o A) Market
o B) Command
o C) Traditional
o D) Mixed
6. In which economic system do supply and demand primarily determine prices?
o A) Command
o B) Traditional
o C) Market
o D) Mixed
7.
o Which system combines elements of both market and command economies?
o A) Traditional
o B) Mixed
o C) Market
o D) Command

Answer 1

1. C) Traditional — answers based on customs/traditions
2. B) Government — central planners decide production
3. C) Market — private ownership; decisions by supply and demand
4. A) Low government intervention — mixed economy nearer a pure market has less govt control
5. B) Command — significant government control and planning
6. C) Market — prices determined primarily by supply and demand
7. B) Mixed — combines market and command elements