Economic Systems & the Circular Flow is one of 8 topics in the Grade 9 Economic and Management Sciences CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. In which economic system does the government own most resources and make the key production decisions?
A planned economy
A market economy
A mixed economy
A global economy
Answer: A planned economy — In a planned (command) economy, the government owns most resources and decides what, how much, and at what price things are produced.
Easy
2. What kind of economic system does South Africa have?
A mixed economy
A pure planned economy
A pure market economy
None of these -- South Africa has no economic system
Answer: A mixed economy — South Africa, like most countries today, has a mixed economy, combining private ownership and markets with government intervention in areas like healthcare and social grants.
Medium
3. Name the economic system in which individuals and private businesses make their own production decisions based on supply and demand, with very little government interference.
Answer: a market economy — A market (free-market) economy is driven by private ownership and the forces of supply and demand, with minimal government interference.
