Traditional
What is a traditional economy primarily based on?
Customs and traditions passed down through generations.
Who decides what to make, buy, and sell in a market economy?
Individuals and businesses.
Who makes the economic decisions in a command economy?
The government.
What combines elements of both government control and individual choice?
Mixed market economy.
What type of government is run by the people through elected representatives?
Democratic government.
In a traditional economy, how are jobs and skills typically transferred?
From parents to children.
What determines prices in a market economy?
Supply and demand.
What is one drawback of a command economy?
People have little choice in what to buy or sell.
Why do most countries use a mixed market economy?
It allows for both economic freedom and regulations.
What type of government has centralized control and often restricts individual freedoms?
Authoritarian government.
Name one way people in a traditional economy produce goods.
By farming, hunting, or fishing.
What is the level of government control in a market economy?
Little or no government control.
In a command economy, what does the government decide?
What goods and services are produced and how they are distributed.
What role does the government play in a mixed market economy?
Sets rules while individuals and businesses make decisions.
In which type of government do citizens have a high level of participation?
Democratic government.
What is a common feature of a traditional economy?
Producing only what is needed.
What is one advantage of a market economy?
Greater individual choice.
What is a key characteristic of a command economy?
Centralized control by the government.
How do mixed market economies benefit consumers?
By providing a variety of goods and services.
What is a characteristic of a totalitarian government?
The government seeks to control all aspects of public and private life.
In a traditional economy, what is the primary method of making economic decisions?
Following ancestral practices.
What economic system is characterized by competition among businesses?
Market economy.
How does a command economy impact individual freedoms?
It limits individual economic choices.
What is a common feature of mixed market economies?
Balance between government involvement and market freedom.
Name one advantage of a democratic government compared to an authoritarian government.
Greater protection of individual rights and freedoms.