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Types of Economies Quiz

Last updated almost 2 years ago

8 questions

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Question 1

1.

An economy in which most economic issues of production and distribution are resolved through central planning and control.

Traditional

Command

Market

Socialist

Mixed

Question 2

2.

An economy that involves a degree of private economic freedom mixed with a degree of government regulation of markets.

Traditional

Command

Market

Socialist

Mixed

Question 3

3.

An economy in which customs and habits from the past are used to resolve most economic issues of production and distribution.

Traditional

Command

Market

Socialist

Mixed

Question 4

4.

An advantage of a market economy.

Maximizes social
welfare

Competition pushes
businesses to efficient

Less inequality of income
because government’s intent
is to have a balanced
economy

Prevents the rich from
exploiting the poor

Question 5

5.

A disadvantage of a command economy.

Prevent monopolies

Prevent mass
unemployment

Promotes a more
educated society

Produce products that
are not always used

Question 6

6.

An advantage of socialist economies.

Less inequality of income
because government’s intent
is to have a balanced
economy

Strong social
network

Resistance to
change

-Large gap between
the rich and poor

Question 7

7.

What is NOT a common disadvantage of a pure market economy

Unfair business practices

Unsafe products

Lack of inflation

Unstable economy

Environmental damage

Question 8

8.

What type of economy does the United States possess?

Traditional

Command

Market

Socialist

Mixed