Chp 2 Sec 1 Quiz

Question 1

Name the 4 Economic systems in the world

Answer 1

1) traditional
2) command
3) market
4) mixed

Question 2

An economic system in production, investment, prices and incomes are determined by rituals, habits, customs and beliefs (many are rural and farm based)

Answer 2

Traditional economy

Question 3

Advantage- Everyone knows what, how and for whom to produce

Disadvantages- 1) it tends to discourage new ideas and new ways of doing things
2) creates a lack of progress

Answer 3

Traditional economy

Question 4

(Pure) an Economic System in which production, investment, prices and incomes are determined by a central authority (king, dictator, state, government).

Answer 4

Command economy

Question 5

In a command economy, who decides what, how and for whom to produce

Answer 5

Central authority

Question 6

An economic and political system in which the government owns some, but not all factors of production and makes most/all of the economic decisions (North Korea, Cuba, Venezuela, Vietnam)

Answer 6

Socialism

Question 7

A modern, liberal version of the command economy

Answer 7

Socialism

Question 8

Advantages

1) it can change direction drastically
2) allows ppl to receive some services they otherwise may not be able to afford(healthcare)

Disadvantages

1) leaders provide for themselves at the expense of the general population
2) the loss of individual freedom to choose
3) a low quality and quantity of goods
4) tax rates are high

Answer 8

Command economy

Question 9

An economic system in which production, investment, prices and incomes are determined and controlled by buyers and sellers (individuals) freely conducting business (USA, Australia, Canada, Great Britain)

Answer 9

Market economy

Question 10

In a market economy, The what, how and for whom to produce questions are answered by who

Answer 10

The consumers

Question 11

What Economy is based on capitalism

Answer 11

Market economy

Question 12

The most powerful engine generating wealth the world has ever seen

Answer 12

Capitalism

Question 13

Advantages

1) individual freedom
2) adjust gradually to change over time
3) small degree of government interference
4) provides a wide variety of good and services

Disadvantages

1) doesn’t provide for everyone
2) can have a high degree of uncertainty

Answer 13

Market economy