Question

1. Mixed economies have aspects of both

a. demand and traditional economies.
b. command and market economies.
c. market and traditional economies.
d. command and demand economies.
2. Most countries of the world today have a
a. market economy.
b. traditional economy.
c. mixed economy.
d. command economy.
3. Inflation indicates that
a. unemployment is falling.
b. unemployment is rising.
c. the Consumer Price Index is falling.
d. the Consumer Price Index is rising.
3. An indicator of steady economic growth is a
a. zero inflation rate.
b. negativ

Answer 1

1) Mixed economies are a mix of Command (regulated by the government) and free (Market) economy - the answer is b)
2)Today most countries have a mixed economy, there are few (such as North Korea) which have a command economy, but none have a true free market (for example drugs are regulated)
3)Inflation means that one needs more money to buy the same goods - this is measured by a rising Consumer Prize index (answer d)
4) this indicator would be a steady, but low inflation - but inflation is bad for the economy but lack of inflation is not really stable