What Kind Of Economy Am I?

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| By Csavaglio

Csavaglio

Community Contributor

Quizzes Created: 1 | Total Attempts: 430

Questions: 8 | Attempts: 430 | Updated: Mar 21, 2023

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Questions and Answers

1.

The expression "supply and demand" reflects what kind of economy?
- A.
  
  Command economy
- B.
  
  Traditional economy
- C.
  
  Market economy
- D.
  
  Mixed economy
Correct Answer
C. Market economy

Explanation
The expression "supply and demand" reflects a market economy because it refers to the interaction between buyers and sellers in determining the prices and quantities of goods and services. In a market economy, prices are determined by the forces of supply and demand, and individuals and businesses have the freedom to make their own economic decisions. This is in contrast to a command economy where the government controls the production and distribution of goods, or a traditional economy where economic decisions are based on customs and traditions. A mixed economy combines elements of both market and command economies.

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2.

In a command economy prices for goods and services are set by ...
- A.
  
  The government
- B.
  
  A group of community members
- C.
  
  Negotiation
- D.
  
  The producers
Correct Answer
A. The government

Explanation
In a command economy, prices for goods and services are set by the government. This means that the government determines the cost of products and services based on factors such as production costs, supply and demand, and social objectives. By setting prices, the government aims to control the economy and ensure equitable distribution of resources. This centralized approach allows the government to have significant control over the market and influence economic decisions.

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3.

The Native American system of trading game for tools represents what kind of economy?
- A.
  
  Mixed economy
- B.
  
  Traditional economy
- C.
  
  Market economy
- D.
  
  Command economy
Correct Answer
B. Traditional economy

Explanation
The Native American system of trading game for tools represents a traditional economy. In a traditional economy, goods and services are exchanged based on customs, traditions, and cultural practices rather than through a formal market system. The Native Americans relied on barter and trade to meet their needs, exchanging game they hunted for tools they needed. This system was deeply rooted in their cultural and historical practices, reflecting the traditional economic practices of their society.

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4.

An economy in which a producer keeps all the profits is called ...
- A.
  
  A mixed economy
- B.
  
  A traditional economy
- C.
  
  A market economy
- D.
  
  A command economy
Correct Answer
C. A market economy

Explanation
A market economy is an economic system in which producers have the freedom to keep all the profits they make. In this type of economy, the prices of goods and services are determined by supply and demand, and the government has minimal intervention. This allows producers to retain their profits and decide how to allocate them, which encourages competition and innovation.

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5.

An economy that is ruled by the people is a ...
- A.
  
  Market economy
- B.
  
  Mixed economy
- C.
  
  Traditional economy
- D.
  
  Command economy
Correct Answer
A. Market economy

Explanation
A market economy is an economic system where decisions regarding production, investment, and distribution are made by the interactions of individuals and businesses in the marketplace. In this system, the government does not have significant control over the economy, and the allocation of resources is determined by supply and demand. Therefore, it can be inferred that an economy ruled by the people, where individuals and businesses make their own economic decisions, aligns with the characteristics of a market economy.

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6.

A grouping of farms governed by community leaders could be an example of ...
- A.
  
  A command economy
- B.
  
  A traditional economy
- C.
  
  A market economy
- D.
  
  A mixed economy
Correct Answer
B. A traditional economy

Explanation
A grouping of farms governed by community leaders could be an example of a traditional economy because in a traditional economy, economic decisions are based on customs, traditions, and cultural beliefs. In this scenario, the community leaders would make decisions about what crops to grow, how to distribute resources, and how to allocate labor based on their traditional practices and values.

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7.

Communist styles of government usually feature what kind of economy?
- A.
  
  A mixed economy
- B.
  
  A traditional economy
- C.
  
  A market economy
- D.
  
  A command economy
Correct Answer
D. A command economy

Explanation
Communist styles of government usually feature a command economy. In a command economy, the government has complete control over the allocation of resources and the production of goods and services. The government determines what will be produced, how it will be produced, and who will receive the products. This centralized control is a key characteristic of communist governments, where the goal is to achieve economic equality and eliminate private ownership of resources and means of production.

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8.

What type of economy do we have in the United States?
- A.
  
  A traditional economy
- B.
  
  A market economy
- C.
  
  A command economy
- D.
  
  A mixed economy
Correct Answer
B. A market economy

Explanation
The United States has a market economy. In a market economy, the allocation of resources and production decisions are primarily determined by supply and demand in the marketplace. It is characterized by private ownership of businesses and individuals making choices based on self-interest. The government's role is limited to enforcing laws and regulations to ensure fair competition and protect consumers. In a market economy, prices are determined by the interaction of buyers and sellers in the market, and there is a high degree of economic freedom and individual choice.

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