2.1 Economic Systems Notes

Open Ended

Explain why nations must answer the three fundamental questions about the production and distribution of goods.

Multiple Choice

Why is it important for a country to have an economic system in place?

• To ensure fair distribution of resources

• To increase population

• To promote only one type of industry

• To eliminate all forms of government

Multiple Choice

Which of the following is NOT one of the three basic economic questions that define an economic system?

• What goods will be produced?

• How will the goods be produced?

• Who will produce the goods?

• For whom will the goods be produced?

Open Ended

Explain how the role of government differs in free enterprise and socialism.

Multiple Select

Which of the following statements are true about decentralized socialism and communism?

• In decentralized socialism, the government controls all legal economic activities.

• In communism, private property rights are more likely to be taken away.

• People are freer to decide where they will work in decentralized socialism.

• In communism, the government oversees but does not control every aspect of the economy.

Open Ended

What are some possible reasons why countries with high economic freedom, as shown in the 2022 Economic Freedom Index, might also have mixed economies?

Open Ended

Reflecting on today's lesson about economic systems, which of the three fundamental questions about production and distribution do you think is the most challenging for nations to answer, and why?