Economic Systems 1

Open Ended

Which scenario do you think is the most ideal? Why?

Multiple Choice

What is the term used to describe the limited supply of something?

• Abundance

• Scarcity

• Resource

• Economy

Open Ended

What are the three basic questions of economies?

Multiple Choice

How does a traditional economy typically handle economic downturns or bad harvests?

• Through government bailouts

• By relying on community support and sharing resources

• By importing goods from other economies

• Through technological innovation

Multiple Choice

What is a traditional economy?

• A. An economy where the government makes most of the economic decisions.

• B. An economy where consumers and businesses jointly answer questions of what, how, and for whom to produce.

• C. An economy where traditional societies use ritual/habitat/custom to answer what, how, and for whom to produce.

• D. An economy where the government and businesses jointly answer questions of what, how, and for whom to produce.

Multiple Choice

Which Sub-Saharan country likely has a TRADITIONAL ECONOMY? (see the chart)

• Angola

• Kenya

• Seychelles

• Uganda

Multiple Choice

What is a disadvantage of a command economy?

• It can lead to a lack of innovation due to government control.

• It relies too much on ancient traditions.

• It allows for too much competition.

• It encourages too much private ownership.

Multiple Choice

What are some characteristics of a command economy?

• Government control of resources

• Free market competition

• Private ownership of businesses

• Limited government intervention

Open Ended

How will goods/services be produced?

Multiple Choice

What is the role of free enterprise in a market economy?

• It controls prices of goods/services

• It eliminates competition

• It helps make economic decisions

• It restricts buyer-seller interaction

Multiple Choice

In a truly free market economy, what would happen if the government was not involved?

• There would be laws to ensure goods/services were safe.

• There would be laws to protect workers from unfair bosses.

• There would be no laws to ensure goods/services were safe.

• There would be no laws to protect workers from unfair bosses.

Multiple Choice

A drought has made this year's tomato harvest smaller than usual. What will probably happen to the overall supply of tomato sauce?

• The supply will probably go up

• The supply will probably go down

Multiple Choice

How do mixed economies attempt to solve the problem of economic efficiency?

• By strictly adhering to traditional customs and practices

• Through government regulation and ownership of key industries, while allowing a free market in other areas

• By eliminating private ownership of businesses

• By allowing the market to operate without any form of government intervention

Categorize

Options (20)

Tribal leadership makes decisions

Custom drives economic production

The least innovative

Tend to be run by thoughtful elders

Government makes all the economic decisions

Often needs propaganda is necessary to keep workers inspired

Unfortunately a lot of these economies are run by a dictator

NO government involvement in economy

Low unemployment rate because government finds people a job

People have the least input on economic decisions in t

The hardest working, most innovative rise to the top

This economy would have the most unemployed

Laissez faire - government is hands off of economy

Some government involvement in economy

Freedom to make economic decisions, but limited by some rules

Tries to look after unfortunate if people aren't successful in free market

Rules to protect consumer

Government might own some parts of economy such as public schools

No protections for consumers or workers

Everyone has a role and contributes to the greater good of every person.

Organize these options into the right categories - Each economy has five answers!

Traditional

Command

Free Market

Mixed Market

Categorize

Options (7)

based on supply and demand and factors such as competition

examples : U.S., Canada, France, Britain

also called the free enterprise system

government owns and controls businesses, production, and prices

examples: North Korea, Cuba, Vietnam

examples; Sweden, Israel

government controls some businesses or services while others are individually owned

Organize these options into the right categories

free market

command

mixed

Multiple Choice

The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

• Government
• Economy

Multiple Choice

An economy where the government controls the factors of production resources.

• command

• market

• capitalism

• mixed

Multiple Choice

An economy based on private ownership of business and consumers freely choose goods and services.

• Capitalism

• Communism

• Traditional

• Mixed

Multiple Choice

The value of all the goods and services that a country produces in a year.

• Gross Domestic Product (GDP)

• Factors of Production (FOP)

• Free-Market Economy (FME)

Multiple Choice

Ivan works in a government owned car factory because this was the job he was assigned. Every day he works hard to meet production goals set by his leaders. He his happy to do the work because he knows he is doing his part to keep his government strong and powerful.

In which type of economy does Ivan work?

• Command

• Market

• Traditional

• Mixed

Multiple Choice

In eastern Africa, the Maasai people have an economy based on raising cattle, goats, and sheep. They have lived this way for many generations. Maasai groups share grazing land and water and exchange livestock as a way to establish group bonds. This system allows the Maasai to take care of each other and focus on the needs of the children and the elderly.

What type of economic system best describes the one the Maasai use?

• Command

• Mixed

• Traditional

• Market

Multiple Choice

Steve started a technology company because he noticed people really like new technology. At first Steve decided to make cell phones. Then he noticed that man people were buying tablets as well. Steve realized he could make even more profit if he manufactured tablets and cell phones. Now Steve runs an even more profitable company. The government does NOT tell Steve what to do, and because of this he pays his employees as little as possible and does not have health care benefits.

What type of economic system does Steve participate in?

• Traditional

• Market

• Mixed

• Command

Multiple Choice

Abby was tired of working at a bank and decided to follow her love of baking. She got a loan and opened a cake shop that specializes in creating wedding cakes. Abby puts in long hours making amazing cakes, but she is happy because she is following her dream. Abby also has to make sure she is following government regulations about food safety. Abby has to wear gloves when working with food items and make sure foods that can spoil are always kept at cold temperatures. Abby joined a Bakers Association to help keep up with the rules around food service.

What kind of economy is being used in Abby's society?

• Market

• Traditional

• Command

• Mixed

Multiple Choice

Surplus is the amount left over after a goal is met.

• True

• False

Multiple Choice

Scarcity is:

• the surplus of an item

• the control of an item

• the short supply of an item

Multiple Choice

Maria goes to the store and buys a new backpack.

• Maria is a consumer

• Maria is a producer

• Maria is making a profit

• Maria is owning a business

Multiple Choice

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product