AnswersFL-2100310-United States History AComparing Economic Systems

4.2 Comparing Economic Systems Answers

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Study the chart.CountrySystemGDP per capitaSwitzerlandFree market$76, 101.30IrelandFree market$107,862.40VietnamCommand$3,694.00CubaCommand$9,477.90AustraliaMixed market$62,345.20FranceMixed market$50,543.70Gross domestic product (GDP): the total economic value of a country in a yearGDP per capita: the total GDP (economic value of a country) divided by the number of people in a country.

A
A country’s economy tends to have little to no effect on how much wealth is generated per person.
B
Mixed-market economies tend to generate more wealth per person than free-market or command economies.
C
Command economies tend to generate more wealth per person than free-market or mixed-market economies.
D
Free-market and mixed-market economies tend to generate more wealth per person than command economies.
2
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Which of the following businesses most likely exists in a free-market economy?

A
Community members hunt animals and harvest crops. They use little money and trade with each other to obtain anything else they might need.
B
The owner of a small bakery has seven employees. She must increase her employees’ hourly rate after the government increases the minimum wage.
C
A government-owned company produces medical equipment. The government decides how the equipment will be distributed and how much consumers will pay.
D
A business owner opens a factory to produce airplane parts. The business owner decides which parts and how many to produce based on customer orders.
3

Which example suggests a command economy?

A
The government regulates a private refinery’s release of pollutants into the air.
B
The government instructs a factory to make 5,000 T-shirts.
C
A shop owner increases production of a toy in high demand and short supply.
D
A family trades vegetables from their garden for meat.
4

Which method does a free-market economy use to encourage economic growth that a command economy does not?

A
the creation of a plan that outlines production goals and priorities
B
the use of supply and demand to determine prices
C
the creation of regulations that protect consumers and the environment
D
the use of government-owned businesses to provide jobs
5

What is one way a command economy may likely benefit the lives of most private citizens?

A
by allowing people to make most economic decisions
B
by keeping unemployment low and wages high
C
by providing access to nationalized healthcare
D
by promoting a variety of goods and services
6

Which statement best describes how a command economy impacts economic growth?

A
It encourages economic growth by ensuring that most people have a job.
B
It accelerates economic growth by producing goods in the most efficient ways possible.
C
It does not affect economic growth because the government only produces what it needs.
D
It slows economic growth by limiting competition and discouraging new ideas and innovations.
7

Read the following facts about Cuba’s economy:Cubans have access to disability and retirement benefits. Cuba recently recognized the existence of private property.Tax policies are designed to prevent the growth of wealth.Financial assistance is provided for housing, utilities, and food.

A
Cubans have access to disability and retirement benefits.
B
Cuba recently recognized the existence of private property.
C
Tax policies are designed to prevent the growth of wealth.
D
Financial assistance is provided for housing, utilities, and food.
8

Study the chart.CountrySystemGDP per capitaSwitzerlandFree market$76, 101.30IrelandFree market$107,862.40VietnamCommand$3,694.00CubaCommand$9,477.90AustraliaMixed market$62,345.20FranceMixed market$50,543.70Gross domestic product (GDP): the total economic value of a country in a yearGDP per capita: the total GDP (economic value of a country) divided by the number of people in a country.GDP per capita helps society compare one country’s economic success to another.

A
Switzerland
B
Ireland
C
Vietnam
D
France
9

What is one effect of monopolies on market economies?

A
increased economic choices
B
decreased demand for products
C
increased prices
D
decreased unemployment
10

Which trait is shared by both free-market and mixed-market systems?

A
Individuals are able to own and control resources.
B
There are governmental regulations in place to protect workers.
C
Taxes and tariffs are used to fund social welfare programs.
D
The government plays no role in economic decision-making.
11

How are prices determined differently in a free-market economy versus a command economy?

A
In a command economy, consumers control prices, while in a free-market economy, the government controls prices.
B
In a command economy, manufacturers control prices, while in a free-market economy, consumers control prices.
C
In a command economy, the government controls prices, while in a free-market economy, the market controls prices.
D
In a command economy, the market controls prices, while in a free-market economy, manufacturers control prices.
12

What is one advantage a command economy offers workers that a market economy does not?

A
job security
B
high wages
C
career options
D
advancement opportunities
13

Which phrase best describes the characteristics of a monopoly?

A
a group of companies that produce and sell products at similar prices
B
a group of companies that encourage competition by creating new products
C
a large company that dominates its industry with little or no competition
D
a large company that efficiently produces high-quality goods or services
14

Question text not available

Question illustration
A
North Korea
B
Iran
C
India
D
New Zealand
Option D
15

Which phrase best describes the primary goal of a command economy?

A
to make economic decisions guided by tradition and culture
B
to provide everyone access to the same economic opportunities
C
to centralize economic planning and meet production goals
D
to ensure that all involved in the economy are able to benefit
16

Question text not available

Question illustration
A
North Korea
B
Iran
C
India
D
New Zealand
Option D

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