Economic Systems Flashcards

Questions and Answers

What are the pros of a mixed market economy for most citizens? (Select all that apply)

There is a great deal of independence and personal choice. (correct)

There may be greater opportunity to become wealthy. (correct)

The government cannot dictate which jobs citizens hold. (correct)

There may be less of a gap between rich and poor people.

The economic system works to promote equality.

The government provides most basic necessities for citizens.

Which type of economy is being described: In this economy, community members typically use simple tools to plant and harvest crops. Food supplies are supplemented by hunting animals and gathering plant materials. Members trade with each other to obtain needed goods, as few people hold currency. Little economic growth occurs.

A traditional economy (correct)

A free market economy

A command economy

A mixed-market economy

What restriction would the government impose in a closed economy?

The government would prohibit trade with other nations.

In a communist command economy, workers are employed by?

the state Signup and view all the answers

Which nation has a command economy?

Cuba Signup and view all the answers

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

In Cuba, the government's control of the economy has begun to loosen. In North Korea, the government maintains a tight hold over the economy. Signup and view all the answers

What is prohibited in a command economy? (Select all that apply)

The influence of consumer demand Signup and view all the answers

The most common economic system in the world is a?

mixed market economy 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

The goal of a market economy is to?

promote free economic choices. Signup and view all the answers

A mixed market economy tends to exist under a?

democratic government that provides some regulation. Signup and view all the answers

Which statement best describes a mixed market economy?

Producers and consumers make some economic choices while the government makes others. Signup and view all the answers

Which statement best describes a command economy?

The government determines economic choices and makes most decisions. Signup and view all the answers

Study Notes

Economic Systems Overview

Mixed market economy offers personal choice and independence for citizens.
In a mixed economy, the government does not dictate job choices, promoting individual wealth opportunities.
Traditional economies utilize simple tools for agriculture, emphasize trade among community members, and show limited economic growth.

Government Restrictions and Roles

Closed economies restrict trade with other nations, isolating the economy from global markets.
In communist command economies, workers are employed by the state, reflecting central control over labor.
Command economies, like Cuba, limit personal property ownership and consumer demand influence.

Economic Comparisons

Cuba's economy is loosening, contrasting with North Korea's strict governmental controls.
Economic uncertainty can arise from individual choice in North Korea, whereas Cuba faces economic security under government control.

Global Economic Systems

The most common system worldwide is the mixed market economy, balancing private enterprise with government regulation.
Republics typically allow private ownership of businesses, facilitating economic freedom and self-initiative.

Objectives and Characteristics

Market economies aim to promote free economic choices without stringent regulations.
Mixed market economies operate under democratic governments, which provide some level of regulation, allowing for a combination of consumer and producer decision-making.

Command Economy Attributes

Command economies feature significant government intervention where it determines economic choices and controls production, contrasting with the liberties found in mixed or free-market systems.

Description

This quiz focuses on the advantages of a mixed market economy for citizens. Test your understanding of key concepts and benefits associated with this economic system, including independence, wealth opportunities, and governmental roles. Perfect for students studying economics or preparing for exams.