Economic Systems

Question 1

Economic system which stems from ritual, habit, or custom

Accepted Answer

traditional economy

Question 2

In a circular flow diagram, which "market" shows the exchange of the factors of production?

Accepted Answer

Factor market

Question 3

Which group of people makes the decisions in a Free Market Economy?

Accepted Answer

individuals

Question 4

Which economic goal says you can work wherever YOU want?

Accepted Answer

economic freedom

Question 5

Individuals make the majority of the WHAT, HOW, and FOR WHOM decisions

Accepted Answer

free market economy

Question 6

A Traditional Economy is based on

Accepted Answer

habit and custom.

Question 7

Which economic system is based on what the government decides?

Accepted Answer

Centrally Planned

Question 8

Which of these characteristics is common in a Traditional Economy?

Accepted Answer

It discourages new ideas and new ways of doing things.

Question 9

If the government is providing a safety net for workers, which goal is this?

Accepted Answer

economic security

Question 10

In a free market system who owns the factors of production?

Accepted Answer

Individuals

Question 11

In a circular flow diagram, which "market" shows the exchange of goods and services?

Accepted Answer

Product market

Question 12

Economic system that has some Centrally Planned and Free Market economies

Accepted Answer

mixed economy

Question 13

What concept did Adam Smith come up with?

Accepted Answer

free enterprise system

Question 14

What is the goal of a Centrally Planned Economy?

Accepted Answer

make all economic decisions.

Question 15

What is a disadvantage of a Free Market Economy?

Accepted Answer

does not provide for everyone's basic needs.

Question 16

In a Free Market Economy which group of people start new businesses?

Accepted Answer

entrepreneurs

Question 17

Economic system in which the government makes most of the WHAT, HOW, and FOR WHOM decisions

Accepted Answer

centrally planned economy

Questions 17