Explain the differences between market and command economies.
Market: Businesses and owners make most decisions with little government interference. Command: Government leaders make all business decisions.
10
Name the four types of economic systems (Hint: Not capitalism, communism, etc...)
Market, Command, Traditional, Mixed
10
Provide an example of a situation where you would see a mixed economy.
This could be anything as long as the company makes most decisions but the government has some power to limit what the company can do.
10
How would the U.S. change if we had a pure market economy?
All decisions would be made by businesses. The government could not restrict them.
10
How would the United States change if we had a pure command economy?
The government would make all business decisions and own all businesses.
10
True or False: A traditional economy tends to stay the same and follow what a culture has done throughout history.
True
5
Which type of economy do we have in the United States? Traditional, command, market, or mixed?
Mixed
5
The Soviet Union, Communist Russia, had which type of economy before collapsing? Market, Command, Traditional or Mixed?
Command
5
Is Karl Marx associated with Capitalism or Communism?
Communism
5
Is Adam Smith well known for Capitalism or Communism?
Capitalism
5
True or False: The United States government has some elements that could be considered socialist.
True
5
True or False: The public school system is an example of communism in America
False: It is an example of socialism: Tax money is being used to support all citizens.
5
What type of system would you have if some industries are controlled by the government but others are controlled by businesses- Capitalist, Socialist, or Communist?
Socialist
10
What is opportunity cost?
The choice you give up when you have to decide between two or more choices.
5
What is scarcity?
The reality we don't have enough money, time, or resources to get everything we want.
10
If you are studying Economics, what are you studying?
How we as humans use limited resources when we have unlimited wants.
