Economic Systems Flashcards

Questions and Answers

Which statement best describes a mixed market economy?

Producers and consumers make some economic choices while the government makes others. (correct)

Consumer intervention in economic choices is strictly forbidden.

The decisions made by producers and consumers drive all economic choices.

The government determines economic choices and makes most decisions.

A command economy tends to exist under a...

Socialist government that provides a lot of regulation. (correct)

Communist government that provides little regulation.

Representative government that provides no regulation.

Democratic government that provides some regulation.

Which nation has a socialist command economy?

South Korea

North Korea

Cuba (correct)

The United States

The most common economic system in the world is a...

Mixed market economy. Signup and view all the answers

What is one way a command economy affects the lives of private citizens?

Citizens cannot make most economic decisions. Signup and view all the answers

How does the government of a republic typically shape its economy?

The government allows citizens to own private businesses. Signup and view all the answers

How does the economy of Cuba differ from the economy of North Korea?

In North Korea, the government maintains a tight hold over the economy. Signup and view all the answers

The goal of a command economy is to...

Create equality within a society. Signup and view all the answers

What is one way a market economy affects the lives of private citizens?

Citizens can change jobs relatively easily. Signup and view all the answers

The citizens of the United States live and work in a...

Mixed market economy. Signup and view all the answers

Study Notes

Economic Systems Overview

A mixed market economy allows both producers and consumers to make some economic choices, while the government intervenes in others.
Command economies are typically associated with socialist governments that place significant regulation on economic activities.

Specific Economic Systems

Cuba is an example of a nation with a socialist command economy.
The most prevalent economic system globally is the mixed market economy.

Impact on Citizens

In command economies, citizens often cannot make most economic decisions, limiting their economic freedom.
Conversely, in market economies, citizens can change jobs relatively easily, promoting individual choice and mobility.

Government Roles

In a republic, the government plays a role that facilitates private business ownership, enabling economic activity and entrepreneurship.
The primary goal of command economies is to create equality within the society, often at the expense of individual economic freedoms.

Comparisons Between Nations

The Cuban economy has seen a gradual loosening of government control, while North Korea remains under strict governmental authority with little economic flexibility.
Economic conditions differ between Cuba and North Korea, with Cuba experiencing some uncertainty alongside growing individual choice. In contrast, North Korea maintains economic security due to its stringent control.

Overall Characteristics

The citizens of the United States function within a mixed market economy, balancing government regulation with individual enterprise.

Description

Test your knowledge of various economic systems with these flashcards, focusing on definitions and characteristics of economies such as mixed market economies. Each card presents a statement followed by an explanation to reinforce your understanding.