Question

name: economic systems: africa directions: circle the best answer choice based on the passage. 1. which 3 questions must be answered for an economy to be successful? a. what to produce, how to produce, and for whom to produce it b. what goods are needed, where is the labor, how to transport c. where to put a factory, how to hire workers, how to sell the goods d. what can be traded, who can it be traded with, and how to collect a profit 2. how many basic economic models are there? a. 1 b. 2 c. 3 d. 9 3. which is the best description of a traditional economy? a. a small economy based on tradition b. a large economy based on tradition c. a government - controlled economy d. an economy with limited government control 4. which is the best synonym for bartering? a. giving b. stealing c. producing d. trading 5. who typically operates a command economy? a. a king b. the citizens c. an elected president d. a dictator 6. who controls the quantity of goods and services produced in a command economy? a. the people b. foreign countries c. supply and demand d. the government 7. which is the best description of a market economy? a. businesses making decisions based on the needs of a consumer b. supply and demand c. very little government control d. all of the above 8. which type of economy encourages entrepreneurship and supply - and - demand? a. market economy b. dictator economy c. traditional economy d. command economy

Explanation:

1. In economics, the three fundamental questions for an economy are "What to produce, how to produce, and for whom to produce".
2. The basic economic models are traditional, command, and market, so there are 3.
3. A traditional economy is typically small and based on traditions.
4. Bartering is essentially trading goods or services without using money.
5. A command economy is typically operated by a dictator (or a central authority with absolute control).
6. In a command economy, the government controls production quantity.
7. A market economy involves businesses responding to consumer needs (demand), supply - demand interaction, and has little government control.
8. A market economy encourages entrepreneurship as it is driven by supply - demand and private enterprise.

Answer:

1. a. What to produce, how to produce, and for whom to produce it
2. c. 3
3. a. A small economy based on tradition
4. d. Trading
5. d. A dictator
6. d. The government
7. d. All of the above
8. a. Market economy