Economics and Government Test Review Flashcards
What are the three basic questions that every economic system must answer?
What product/service will be produced? How will it be made? And who will consume/buy it.
What are the three economic systems?
Market, traditional, command.
The former Soviet Union was an example of what kind of economic system?
Command
Which economic system allows for the most individual freedom?
Market
In which economic system does the government have the most control?
Command
In which economic system do individuals do things based on customs and beliefs ?
Traditional
What is the economic system of most communist countries?
Command
How do traditional economies exchange goods?
Bartering
Which country is closest to a true Market economy?
United States
Most democratic countries have which type of economic system?
Market
The government makes ALL economic decisions.
Command
In thissystem, your parents were peanut farmers, now you have to be a peanut farmer too.
Traditional
