Unit 1- Economic Systems

​Economic Systems

​What is an economic system?

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An economic system is the decision-making structure of a nation's economy, characterized by the entities and policies that shape it. In other words; it is the study of people and choices.

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It is the process by which humans deal with scarcity.

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Multiple Choice

When you make a decision on what to do you must also factor in what you are giving up. This is known as what?

• Opportunity Cost

• Scarcity

• Risk Analysis

• Incentive

Open Ended

Why does scarcity exist?

Multiple Choice

Physical and mental effort  

• Land

• Labor

• Capital

• Entrepreneurship 

Multiple Choice

Tools, machines and roads

• Entrepreneurship 

• Capital

• Land 

• Labor

​A Command Economy is as known as a

Multiple Choice

An economy based on customs and rituals

• Command

• Traditional

• Free Market

Multiple Choice

Consumer choices determine how industries operate

• Free Market

• Capital

• Command

Multiple Choice

Government makes all economic decisions. 

• Traditional

• Command

• Free Market

• Wrote the book " The Wealth of Nations

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​Market

​Freedom of Choice in Economics

​What is the ultimate goal of Capitalism?

Open Ended

What does laisse-faire mean?

Open Ended

What does economic efficiency mean?

Multiple Choice

A country like North Korea has a planned economy so therefore they have this type of system.

• Communist

• Socialist

• Capitalist

• Mixed

Multiple Choice

The US allows for a free market but they also assume responsibility for some things such as education and transportation. What type of system do we have?

• Communist

• Mixed

• Socialist

Multiple Choice

The abolition of private property where there is a true classless society

• Communism

• Capitalism

• Socialism

Multiple Choice

Government regulates the market and owns the means of production but allows for the ownership of private property 

• Socialism

• Communism

• Capitalism