Use the chart below to answer the following question.

Which economic system provides individuals with the most economic freedoms?

A. Traditional
Incorrect. In traditional economies a person’s career choice is predetermined because it is passed down from generation to generation.

B. Command
Incorrect. In command economies the government controls all the decisions.

C. Market
Correct! In a market economy the individuals make a majority of the decisions.

D. Mixed
Incorrect. In mixed economies the government controls some decisions and the individual controls some decisions.

Use the chart below to answer the following question.

Under which economic system would one most likely have the same job as his/her parents?

A. Traditional
Correct! In a traditional economy jobs are passed down from one generation to the next.

B. Command
Incorrect. In a command economy the government controls most decisions such as wages, prices, and production.

C. Market
Incorrect. In a market economy the individual makes the decision as to what job they will have.

D. Mixed
Incorrect. In a mixed economy the government or the individual makes the decision as to what career they will have.

Use the chart below to answer the following question.

What is the United States economic system mostly based upon?

A. Government control of business
Incorrect. In the United States the government has very little control over business decisions.

B. Free Enterprise
Correct! In the United States individuals own businesses and make most of the economic decisions for themselves.

C. Trades passing through generations
Incorrect. Trades pass through generations in a traditional economy, but in the United States an individual can become whatever they want to as long as they prepare for that career.

D. Freedom of speech
Incorrect. Freedom of speech is a right not a type of economic system.

Countries with lots of manufacturing and industry are known as —

A. industrialized countries
Correct! When a country has a lot of manufacturing and industry that country is referred to as a developed or industrialized nation.

B. democracies
Incorrect. A democracy refers to the type of government a country has but has nothing do with the type of economic system or the level of industry as country has.

C. developing countries
Incorrect. The term developing countries describes a nation that is moving toward manufacturing and industry but does not have a lot of it currently.

D. third world countries
Incorrect. Third world countries refers to countries that have very little industry or manufacturing.

What is a key principle of market economy?

A. The means of production are controlled by the state.
Incorrect. In a command economy the means of production are controlled by the state.

B. Supply and demand determine production and price.
Correct! The key principle in a market economy is that supply and demand determines production and price.

C. Employment opportunities are determined by social class.
Incorrect. In a market economy social class does not determine employment opportunities.

D. Businesses are owned by the people collectively.
Incorrect. In a market economy a business can be owned by a collective group of people or an individual.

An economic system that does not require a form of money is referred to as a ________________.

A. command economy
Incorrect. In a command economy there is a monetary unit to assist with trading.

B. mixed economy
Incorrect. In a mixed economy there is a monetary unit to assist with trading.

C. traditional economy
Correct! In a traditional economy people barter to trade goods and you trade what you produce to the person or family that produces what you need or want.

D. market economy
Incorrect. In a market economy there is a monetary unit to assist with trading.

Which of the following is a feature of a command economy?

A. The price of goods and services are based on local tradition.
Incorrect. Local tradition is a feature of a traditional economic system not a command economy.

B. The government decides what goods and services to produce.
Correct! In a command economy that government makes all the decisions related to production.

C. Goods and services are produced for personal or family use only.
Incorrect. A traditional economy is where subsistence farming and production is practiced.

D. The government protects private property rights.
Incorrect. It is a mixed economic system in which the government protects private property rights.

Under the former Soviet Union's command economy, industry was controlled by —

A. the demands of the market
Incorrect. In a command economy the demands of the market are not the controlling force.

B. the Moscow stock exchange
Incorrect. In a command economy stock exchanges do not control the industry. Instead, the governments control every aspect of industry.

C. the central government
Correct! In any command economy industry is going to be controlled by the central government.

D. the industry owners
Incorrect. Industry owners control the aspects of industry in a market economy, but not in a command economy.