What's a key difference between a command economy and socialism?

Command = all productive resources; socialist = some

Which of the following is a disadvantage of a market economy?

It sustains a high degree of uncertainty.

Who makes the decisions in a command economy?

A king or ruler with absolute power

Who affects the choices of all in a market economy?

No one group affects the choices of others.

How does a traditional economy answer the basic questions of WHAT, HOW, and FOR WHOM to produce?

Customs, traditions, and the elders decide

Which statement describes a disadvantage of a command economy?

Nothing stops the govt from producing things that people don’t need or want

What's a benefit of having privately owned resources in a market economy?

People take better care of productive goods & resources when they own them

What's a main disadvantage of a traditional economy?

Those who act differently, break rules, or try something new are punished

A market economy allows buyers and sellers to do what?

Make their own decisions regarding what to buy or what to sell

What kind of economy offers uniformity in wages regardless of individual productivity?

command and socialist economies

What is the key similarity between a command economy and socialism?

major economic decisions are made by govt for the people, not by people

How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?

Socialist economies tend to offer extensive govt services but have high tax

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Econ Ch 2.1

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A social studies Quiz to check understanding of Economics Ch 2 section 1; economic systems

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Questions 15

Answers

1
What's a key difference between a command economy and socialism?
Command = all productive resources; socialist = some
socialist = all production decisions; command = some
Socialism is based on tradition/sharing , command based central authority
They are identical economic systems; socialism is just a more modern term.
2
Which is a modern example of a command economy?
North Korea
Inuit of Northern Canada
United States
African Mbuti
3
Which type of economy is best able to adjust to change over time?
Traditional
Market
Socialist
Command
4
Which of the following is a disadvantage of a market economy?
It does not allocate resources as efficiently as other types of economies.
It discourages creativity and new ideas for doing things.
It sustains a high degree of uncertainty.
It restricts personal freedom.
5
Who makes the decisions in a command economy?
Consumers
Individuals
A king or ruler with absolute power
Elders and tradition
6
Who affects the choices of all in a market economy?
The government
Sellers
Private business owners
No one group affects the choices of others.
7
How does a traditional economy answer the basic questions of WHAT, HOW, and FOR WHOM to produce?
Society decides
The government decides
Consumers decide
Customs, traditions, and the elders decide
8
Which statement describes a disadvantage of a command economy?
Items tend to be produced solely for the sake of profit.
It cannot “change direction” easily if the need arises to do so.
does little to help less advantaged obtain the goods and services they need
Nothing stops the govt from producing things that people don’t need or want
9
What's a benefit of having privately owned resources in a market economy?
Private ownership means a high degree of certainty since no competition
A. The wealthy own public resources.
Private owners don't have an incentive to provide enough goods and services
People take better care of productive goods & resources when they own them
10
What's a main disadvantage of a traditional economy?
Everyone knows their role to play in the economy.
Sharing is a valued practice in a traditional economy
Traditional economies have a higher standard of living than other economies
Those who act differently, break rules, or try something new are punished
11
A market economy allows buyers and sellers to do what?
Follow consumer traditions
Make their own decisions regarding what to buy or what to sell
Interact with government officials to demand production
Commonly own all resources in the economy
12
What kind of economy offers uniformity in wages regardless of individual productivity?
traditional economies
all economies
command and socialist economies
market and free-enterprise economies
13
What is the key similarity between a command economy and socialism?
The major economic decisions are made by the people and government.
Both aim to primarily enhance the welfare of its leaders first.
Individuals own most of the resources in both types of economies.
major economic decisions are made by govt for the people, not by people
14
How is the principle of “There’s No Such Thing As A Free Lunch” illustrated in a socialist economy?
The marketplaces in a socialist economy are free for anyone to enter.
Socialist economies tend to collapse when they become too large.
Socialist economies tend to offer extensive govt services but have high tax
Socialist policies offer advantages to wealthy at expense of less well off
15
Which type of economy has a disadvantage in that it produces low-quality goods?
Command
Traditional
Market
All types of economies are disadvantaged this way

Econ Ch 2.1 Flashcards | StudBud