Economic Systems

Multiple Choice

The common characteristics of these countries can be attributed to their —

• access to good health care and high wages

• strong economies and educational systems

• limited access to health care and education

• high standard of living and individual rights

Free Enterprise/Market Economy

​Amount of government control: little

Businesses can make whatever products they want with very little government control.

There is a lot of competition between businesses to win over customers.

Free Enterprise/Market Economy

Customers have many options when buying goods and services

Prices are determined by supply and demand, not by the government.

Multiple Select

How do businesses try to attract customers in a market economy?

• By offering discounts and rewards

• By running ads

• By raising prices

• By reducing product quality

Socialist Economy

Amount of government control: some

The government owns some important businesses, such as healthcare, transportation, and banking.

The government provides services to all citizens, such as health care, paid for by higher taxes.

​Socialist Economy

There is still some private ownership, but more government involvement than in a free market.

There are more choices than in communism but fewer than in a free market.

Multiple Choice

Which of the following is a characteristic of a socialist economy?

• Higher taxes to pay for services such as healthcare

• Government owns all businesses

• No taxes at all

• Unlimited choices of products

Open Ended

Compare how choices for customers differ between a free enterprise/market economy and a socialist economy.

Communism

Amount of government control: high

The government owns all businesses, and private property is not allowed.

The government decides what products will be made, how much to produce, and sets the price.

Communism

There are few choices for products, and shortages may occur.


It is usually difficult to become wealthy in a communist system.

Multiple Choice

Under communism, there is NO ______________

• navy

• army

• government

• private property

Categorize

Options (7)

In France, the government provides healthcare to all citizens. This is paid for by higher taxes.

Match the following

Free Enterprise

Socialism

Communism

Open Ended

Which economic system to your prefer? Why?

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