1.4 Economic systems and capitalism

4 Economic systems and capitalism

Open Ended

Every nation must determine how to distribute goods and services. (also, the 3 questions!)

What is this called?

Open Ended

When customs and traditions determine goods and services, it is called a ___________ economy.

Multiple Choice

Which is an example of a TRADITIONAL economy?

• Amish

• Communism

• Toyota

Open Ended

What 3 kinds of economies are we going to learn more about?

1-

2-

3-

Multiple Choice

When buyers and sellers in the marketplace determine the economy, what is it called?

• capitalism

• communism

• authoritarian

Multiple Choice

In a capitalist economy, who owns most of the resources?

• the government

• private individuals

• nobody

Open Ended

Who is known as the father of capitalism?

Multiple Select

What are some cons of capitalism?

• unequal distribution of income

• economic freedom

• slow to adjust

Multiple Choice

In a Communist economy, who owns all of the resources?

• Government

• private individuals

• nobody

Multiple Select

What are some cons of Communism?

• people's needs are not met

• adjusts quickly

• lack of worker incentive

Open Ended

Who is known as the father of Communism?

Multiple Choice

In a Socialist economy, who owns the resources?

• both individuals and government

• individuals

• government

Open Ended

What is an example of an extremely authoritarian economy?

Open Ended

Other than the United States, what is an example of a free market (capitalist) economy?

All of the following notes are about CAPITALISM only.

Multiple Choice

People are allowed to own as much property as they want to?

• True

• False

Multiple Choice

People will act out of self-interest. This means that they will do what is best for themselves.

• true

• false

• it depends

Multiple Choice

Businesses will make choices that give them the most profit

• true

• false

• it depends

OK- so, sometimes it depends. As we learn more about environmental impacts, more businesses choose to make environmental responsible choices that might yield less profit. (Their goal is still profit)

but the right answer is "businesses will choose profit"

Multiple Choice

Both buyers and sellers

(consumers and busineses)

have something to gain in the "marketplace"

Are they forced to work together or is it optional?

• voluntary exchange

• forced to participate

Multiple Choice

What regulates our economy?

• competition

• private property rights

• profit

Multiple Select

What are some pros to competition?

• better quality products

• low prices

• self-reliance

Multiple Choice

How do businesses know what to produce?

• consumers tell them what to produce when they buy things

• the government tells them

• based on customs and traditions