Crowdly

A strength of the market system is that it provides an incentive for people to work hard.

In a market system, prices are determined by government bureaucrats.

In a pure market economy, the price mechanism plays an important role in solving the economic problem.

a pure market economy, the

for whom

– or distribution – question is

largely answered according to the needs and wants of individuals and groups in

society.

Which of

the following is primarily responsible for making economic decisions in a pure

market economy?

individual

consumers and suppliers

regulators and bureaucrats

the

central government

large

corporations

Which

one of the following is a strength of a command economy?

Consumers

make the decision about what goods and services are to be produced.

Officials

and bureaucrats can be trusted to make the correct decisions.

It has the ability to change

direction quickly.

is a relatively small and close-knit community.

By whom are major economic decisions

made in a command economy?

the

manufacturers of industrial goods

officials

and bureaucrats who control all the main aspects of economic activity

the

market forces of demand and supply

the

wholesalers of goods

Do you agree or disagree with the following statement?

In a pure command economy, resources are always allocated and distributed efficiently.

Disagree

Agree

Do you agree or disagree with the following statement?

In a pure command economy, all the economic decisions are made by a central authority. It therefore follows that the authority would have the power to force individuals to follow the central plan, even if it is against their will.

Disagree

Agree