Unit 5: Lesson 1

Unit 5: Lesson 1

Economic Systems

Open Ended

Take 2 minutes and think of the term economics. What comes to mind when you hear the term economics?

Standards:

SS7E1; SS7E4; SS7E7 Analyze different economic systems.

a. Compare how traditional, command, and market economies answer the economic

questions of 1-what to produce, 2-how to produce, and 3-for whom to produce.

Learning Intentions:

I am learning how economies answer the three economic questions: what to produce? how to produce? for whom to produce?

Success Criteria:

I can compare how all three

economic systems answer the same economic questions.

Essential Question:

How does select countries in Southwest Asia, Southern and Eastern Asia, and Africa answer basic economic questions?

Multiple Choice

How does a traditional economy differ from a capitalist economy?

• In a traditional system, economic decisions are based on custom.

• In a capitalist system, the government answers the three basic questions.

• In a capitalist system, a central authority owns the factors of production.

• In a traditional system, a great variety of goods and services are available.

Multiple Choice

The North Korean government controls every aspect of the economy. All decisions are made by the government as to what will be produced, for whom, and how it will be produced. North Korea's economic system can MOSTLY be classified as a

• Modern Economy.

• Market Economy

• Command Economy

• Traditional Economy

Multiple Choice

In Saudi Arabia, roughly 95% of the country's oil production is controlled by the government. This would suggest that most of Saudi Arabia is a ___ economy.

• Market

• Command

• Traditional

• Mixed

Multiple Choice

In Nigeria, people can open their own businesses, choose their careers and job paths, and can purchase a wide array of consumer goods. However, the national government institutes tariffs on imported goods, has a significant share in the oil industry, and regulates much of the country's industry. Based on this description, Nigeria could BEST be categorized as a ___ economy.

• Command

• Market

• Mixed

• Traditional

Multiple Choice

Which of these is a correct description of one of the ways in which a command economy differs from a market economy?

• Market economies discourage free enterprise.

• In a market economy, the government sets prices.

• Command economies tend to have a higher per capita GDP.

• In a command economy, individuals have less economic freedom.

Multiple Choice

In this type of economic system, the production of goods and services is controlled solely by the concept of supply and demand, businesses are operated for profit, and the government is not involved.

• command

• communism

• market

• mixed

Multiple Choice

The type of economic system the United States has.

• Mixed Economy
• Traditional Economy
• Free Enterprise
• Command Economy

Multiple Choice

Who makes the decisions and determine how the resources will be used in a command economy?

• the government

• no one

• individuals

• private business

Multiple Choice

Which of the following is NOT one of the basic questions that all economic systems must answer:

• What to produce

• How to produce

• How much to produce

• For whom to produce

Multiple Choice

The four types of economic systems are: 

• Traditional, Command, Mixed, & Market
• Traditional, Command, Combined, & Market
• Communism, Capitalism, Free Market, and Macroeconomics
• Microeconomics, Macroeconomics, Individual, and Traditional.

Multiple Choice

People use the resources they have to make only what they need to survive.

• Market Economy

• Traditional Economy

• Command Economy

• Mixed Economy