1.In a traditional economy, innovation is encouraged.
2.In traditional economies, people base economic decisions on the precedents established by previous generations.
3.A traditional system solves basic economic questions by long-standing customs.
4.A traditional system operates based on the self interest of buyers and sellers.
5.In a command economy, resources are publicly owned by government and economic activity is coordinated through a central government planning authority.
6.Centralized planning agencies are a key feature of command economies.
7.A command system uses a group of planners or central authority to make basic economic decisions.
8.The command system relies on prices set by firms on the basis of consumer demands.
9.When the official price for goods and services is below the equilibrium price in a market, prices no longer perform their rationing function efficiently.
10.Adam Smith believed that the pursuit of the public interest is also the best way to promote the private self interest.
