Economic Systems Quiz

A system where individuals and businesses make economic decisions with minimal government interference. It relies on supply and demand forces to set prices and allocate resources.

A system where the government controls most aspects of the economy, including production, pricing, and distribution of goods and services.

The efficient allocation of resources in a free market leads to optimal resource use, as prices reflect true value and guide production and consumption.

Competition in a free market encourages innovation, as businesses constantly strive to offer better products or services to gain market share.

The government's role in a command economy is to ensure equitable distribution of wealth and resources, aiming to reduce economic disparities.

Centralized control in a command economy can prevent drastic ups and downs in the economy, providing more stability for businesses and workers.

In a command economy, the government can direct resources towards crucial sectors, such as defense or infrastructure, to meet national priorities.

State control in a command economy can help prevent monopolies from dominating the market, promoting fair competition.

An economic system where individuals and businesses make decisions about production, distribution, and consumption based on supply and demand with limited government involvement. Think of a free market where people buy and sell things.

A type of economic system that blends elements of both free market and command economies, allowing for both private businesses and government intervention. Think of a mix of both.

A common characteristic of command economies where the government has sole control over production, leading to a lack of innovation and limited variety of goods. Imagine a world with only one type of sandwich!

A potential downside of command economies where government decisions may not reflect the true needs of communities. Imagine needing oranges but getting apples instead.

A potential drawback of command economies where the concentration of power in the government can lead to corruption and abuse of power. Imagine a single leader making all the rules for everyone.

A stable economic system where traditions guide production, distribution, and consumption. Think of a community growing crops and sharing resources with each other following age-old practices.

A strength of traditional economies where clearly defined structures and roles lead to a stable society. Think of a community with a clear understanding of who does what.

Economic systems that prioritize sustainable resource use, strong community bonds, and minimal environmental impact.

A hallmark of sustainable economies, where people share a common culture and work together for mutual benefit.

A positive aspect of sustainable economies, where reliance on local resources and traditional production methods leads to minimal ecological damage.

A potential drawback of sustainable economies, as the lack of advancements and innovation can limit economic growth.

A challenge faced by sustainable economies arising from the fact that traditional methods may be less productive and resource-intensive compared to modern methods.

A characteristic of sustainable economies, where communities may resist adopting new ideas, technologies, or methodologies.

Unequal distribution of wealth and resources.

One cause of inequality, where individuals with better education tend to earn higher incomes, but access to quality education is not equal for all.

The percentage of the workforce actively seeking employment but without a job.

Measures how quickly prices for goods and services are rising.

The cost of borrowing money, influenced by a nation's central bank.

The total amount of money a government owes.

Occurs when government spending exceeds its income in a particular year.

A situation where the general price level of goods and services is declining.

The process of increasing the money supply in an economy.

A policy aimed at reducing government spending and/or increasing taxes.

Government actions, like spending more or changing taxes, aimed at influencing the economy's health, such as using more spending to help growth during tough times.

Actions taken by a country's central bank to control the amount of money in circulation and interest rates. These actions aim to manage inflation and stabilize the economy.

The situation where limited resources are insufficient to meet unlimited wants and needs. This forces people to make choices about how to use those limited resources.

A situation where the supply of a product exceeds the demand for it. This can lead to lower prices or changes in production.

The total economic output of a country divided by its population. This measures the average economic well-being of its citizens.

Physical things that are produced, bought, and sold to satisfy people's needs and wants.

Intangible actions performed to satisfy needs or wants, including services like healthcare, education, and entertainment.

Focuses on manufacturing and construction, transforming raw materials from the primary sector into finished products.

The point where the supply and demand curves intersect, representing the price and quantity where producers and consumers agree.

The price at which the quantity supplied equals the quantity demanded, determined at the equilibrium point.

A situation where there's an increase in consumer desire for a product, leading to a rightward shift in the demand curve.

A decline in consumer desire for a product, leading to a leftward shift in the demand curve.

A situation where producers can offer more of a product at various prices, leading to a rightward shift in the supply curve.

A situation where producers can offer less of a product at various prices, leading to a leftward shift in the supply curve.

A basic good or raw material that can be bought and sold, typically standardized and traded in large quantities.

Natural resources extracted or mined, like oil, gold, silver, or copper.

Agricultural products or livestock, like wheat, coffee, sugar, or cattle.