Government and Economics Europe

Front

What are the three questions that every country must answer when developing its economic plan?

Back

What goods/services will be produced?, How will goods/services be produced?, Who will consume the goods/services?

Front

The way a country answers these questions determines its

Back

economic system

Front

Economic system in which roles and jobs are inherited.

Back

traditional economy

Front

Economic system in which roles and jobs are determined by the government.

Back

command economy

Front

Economic system in which the citizens dictate what goods and services to sell.

Back

market economy

Front

Trading without using money

Back

bartering

Front

In this economic system, the government regulates all the country’s economic decisions: prices of goods, wages of workers, goods to be made, etc.

Back

command

Front

In this economic system, the government has no control over the economy; private citizens answer all economic questions.

Back

market

Front

Countries with command economies have the same type of government: The government is in control of everything.

Back

command

Front

This system answers the three economic questions based on ______________________ in the market place.

Back

supply and demand