Types of Economies

What is the key factor in determining the type of economy a country has?

• public and private sector
• what will be produced, how it will be produced, and for whom it will be produced
• the availability of resources and demand
• the extent of government involvement

What is one basic question of economics?

• What will be produced?
• Who acquires what goods and services?
• What resources are available?
• What is the opportunity cost?

Each type of economies answers the three basic questions of economics __________.

• the same
• differently

What are some characteristics of a free market economy?

• lack of choice, competition
• individual choice, centrally-planned
• competition, consumer sovereignty
• central ownership of property, profit

Which type of economy has private property, consumer sovereignty, individual choice, profit, and no government involvement?

• traditional economy
• command economy
• free market economy
• mixed economy

Name two characteristics of a command economy.

• centrally-planned, profit
• central ownership of property, lack of choice
• competition, central ownership of resources
• centrally-planned, consumer sovereignty

Name a country that has a command leaning mixed economy.

• United States
• Great Britain
• Germany
• N. Korea

Name a country that has a free market leaning mixed economy.

• United States
• Cuba
• N. Korea 
• Russia

Name a group of people that use a traditional economy.

• Americans
• Native Americans
• Europeans

Which type of economy has central ownership of property, centrally-planned economy, and lack of individual choice?

• Free Market Economy
• Mixed Economy
• Command Economy
• Traditional Economy