Economic Systems Flashcards

Questions and Answers

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

The personal ownership of property (correct)

The intervention of the government

The control of prices and income levels

The influence of consumer demand (correct)

The rationing of manufactured goods

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

The government controls factories and other forms of production.

The government allows citizens to own private businesses. (correct)

The government blocks the ownership of personal property.

The government owns all homes and other forms of housing.

What is the goal of a market economy?

Promote free economic choices.

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

A mixed market economy tends to exist under a:

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

What 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 Signup and view all the answers

Which statement best describes a pure market economy?

The decisions made by producers and consumers drive all economic choices. Signup and view all the answers

A command economy tends to exist under a:

Socialist government that provides a lot of regulation. Signup and view all the answers

What restriction would the government impose in a closed economy?

The government would prohibit trade with other nations. Signup and view all the answers

In a communist command economy, workers are employed by:

The state. Signup and view all the answers

Use the drop-down menu to select the type of economy that matches the description: The government decides what is produced, along with how much is produced.

Command economy Signup and view all the answers

Use the drop-down menu to complete each statement: Communist countries usually have command economies. A command economy that still allows private property and ownership is called?

Socialism Signup and view all the answers

Which statement best describes a pure market economy?

The decisions made by producers and consumers drive all economic choices. 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 command economy is to:

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

Study Notes

Economic Systems Overview

Command economies prohibit personal ownership of property and limit the influence of consumer demand.
In republics, the government typically allows citizens to own private businesses, shaping a market-oriented economy.

Market Economy Features

The primary goal of a market economy is to promote free economic choices among consumers and producers.
A pure market economy relies entirely on decisions made by producers and consumers without government intervention.

Comparative Economic Systems

Cuba's economy is evolving with a loosening of government control, while North Korea maintains strict governmental control.
Mixed market economies often exist under democratic governments that implement some regulations.

Types of Economies

Traditional economies are characterized by community-based practices, simple tools for agriculture, and minimal economic growth.
Command economies are associated with socialist governments that impose extensive regulations and control over production.

Economic Activities and Restrictions

In closed economies, the government restricts trade with other nations to maintain economic independence.
Within a communist command economy, employment lies predominantly with the state, differentiating it from other economic structures.

Definitions and Characteristics

A command economy allows for limited private property and is often termed socialism if the government retains significant control, ultimately leading to communism if it controls all aspects.
Economic choices in a mixed market economy are a blend of public regulation and private control.

Key Statements

Producer intervention is not allowed in pure market economies, which significantly contrasts with command economies where the government determines production and distribution.
Understanding these systems helps identify various forms of governance and control over economic activities seen globally.

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Description

Test your knowledge of economic systems with these flashcards. Explore key concepts such as command economies and the role of government in shaping economies. This quiz will help you understand complex economic principles and their applications.