| 1. What is the market system based on?
| a. Workers are paid wages according how
skilled they are and how many firms wish to
employ them.
|
| 1. Who owns the means of production in a
market economy?
| b. In a market economy consumers decide
what is to be produced.
|
| 2. What are the criteria according to which workers are paid wages?
| c. The system is based on private enterprise
with private ownership of the means of
production.
|
| 3. What are market economies directed by?
| d. A mixed economy contains elements of
both market and command economies
|
| 4. Who decides what is to be produced in a market economy?
| e. They are health, defence, water supply,
education, public transport, electricity
supply.
|
| 6. Is creation of monopolies an advantage or
disadvantage of a market economy?
| f. In a market economy the means of
production are owned by private individuals.
|
| 7. What elements does a mixed economy
contain?
| g. Market economies are directed by prices.
|
| 8. Where does the money for state health and
education services come from in a command
economy?
| h. In mixed economies some resources are
controlled by the government while the
others are used in response to the demands
of consumers.
|
| 9. Who are resources in a mixed economy
controlled by?
| i. Creation of monopolies is a disadvantage of
a market economy.
|
| 10. What important industries and
organizations are controlled by the
government in many countries?
| j. From the government.
|
