Four Economic Systems and the Three Economic Questions

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What is the primary characteristic of a command economy?

Consumers have full economic freedom

There is free competition in the market

Prices are determined by supply and demand

Resource allocation is done by the government (correct)

Which of the following was NOT a responsibility of the Gosplan in the Soviet Union?

Ensuring a balance between different economic sectors

Determining the legal framework for economic activity

Setting prices based on supply and demand (correct)

Setting five-year economic plans

How did the Gosplan create the five-year economic plans?

By auctioning off resources to the highest bidders

By setting broad economic goals and combining them with data from lower administrative levels (correct)

By consulting with consumer groups to determine their needs

By allowing individual enterprises to submit their own production targets

What was the purpose of the five-year plans in the Soviet Union?

To achieve specific economic targets and growth objectives Signup and view all the answers

How did the command economy system in the Soviet Union differ from a market economy?

The government played a central role in allocating resources and making economic decisions Signup and view all the answers

What was the main criticism of the command economy system used in the Soviet Union?

It led to a lack of innovation and technological progress Signup and view all the answers

What is the primary objective of an economic system?

To solve the basic economic problems of what, how, and for whom to produce goods and services Signup and view all the answers

Which of the following is a characteristic of a traditional economy?

Communal land ownership and decision-making based on traditional practices Signup and view all the answers

In a traditional economy, what is the primary factor that determines economic decisions?

Past experiences and traditional practices Signup and view all the answers

Which of the following is NOT a characteristic of a traditional economy?

Embracing new technologies and innovation Signup and view all the answers

In a traditional economy, who typically makes decisions regarding agricultural production?

The community leader or elders Signup and view all the answers

What is the primary source of raw materials for production in a traditional economy?

Mines and natural resource extraction Signup and view all the answers

Four Economic Systems and the Three Economic Questions

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Questions and Answers

What is the primary characteristic of a command economy?

Which of the following was NOT a responsibility of the Gosplan in the Soviet Union?

How did the Gosplan create the five-year economic plans?

What was the purpose of the five-year plans in the Soviet Union?

How did the command economy system in the Soviet Union differ from a market economy?

What was the main criticism of the command economy system used in the Soviet Union?

What is the primary objective of an economic system?

Which of the following is a characteristic of a traditional economy?

In a traditional economy, what is the primary factor that determines economic decisions?

Which of the following is NOT a characteristic of a traditional economy?

In a traditional economy, who typically makes decisions regarding agricultural production?

What is the primary source of raw materials for production in a traditional economy?

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