12 Questions
What is the primary characteristic of a command economy?
Resource allocation is done by the government
Which of the following was NOT a responsibility of the Gosplan in the Soviet Union?
Setting prices based on supply and demand
How did the Gosplan create the five-year economic plans?
By setting broad economic goals and combining them with data from lower administrative levels
What was the purpose of the five-year plans in the Soviet Union?
To achieve specific economic targets and growth objectives
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
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
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
Which of the following is a characteristic of a traditional economy?
Communal land ownership and decision-making based on traditional practices
In a traditional economy, what is the primary factor that determines economic decisions?
Past experiences and traditional practices
Which of the following is NOT a characteristic of a traditional economy?
Embracing new technologies and innovation
In a traditional economy, who typically makes decisions regarding agricultural production?
The community leader or elders
What is the primary source of raw materials for production in a traditional economy?
Mines and natural resource extraction
Explore the roles of the four economic systems in addressing the fundamental economic questions of what, who, and for whom goods and services are produced. Learn about traditional, command, market, and mixed economies.
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