Economics Review

What do mixed economy and market economy have in common?

• Competition in the marketplace

• Big gap between the wealthy and the poor

• Equal standard of living for all

• Government control of the marketplace

What is an ADVANTAGE of a market economy compared with a traditional economy?

• In a market economy, economic decisions are made the way they have always been made.

• In a market economy, innovation and competition in the marketplace are encouraged.

• In a market economy, the government decides what is produced.

• In a market economy, there is an equal standard of living for everyone.

What is a DISADVANTAGE of a market economy compared with a command economy?

• Market economies do not offer much competition for consumers.

• Market economies provide an equal standard of living for everyone.

• Market economies create a huge gap between the wealthy and the poor.

• The government sets prices in a market economy.

What do China's economy and France's economy have in common?

• Both have a strong central government that controls businesses.

• Both allow the market to distribute wealth.

• Both have limited government control over business.

• Both rely on the consumer to guide and make production decisions.

Compare the way economic decisions are made in an Amish community with the way they are made in Cuba?

• Individuals and government make the decisions in an Amish community.

• Individuals make the decisions in Cuba>

• Tradition dictates how decisions are made in Cuba.

• Tradition dictates how decisions are made in an Amish community.

Compare the way economics decisions are made in the United States with the way they are made in China?

• Individuals and government make the decisions in China.

• Individuals and government make the decisions in the United States.

• The government makes all the decisions in the United States

• Tradition dictates how decisions are made in China.

What is a DISADVANTAGE of a traditional economy compared to the other types of economic systems?

• Competition guides the production decisions.

• Decisions are centered toward the family.

• Government takes care of the people's needs.

• State-of-the-art technology is not used.

What is an ADVANTAGE of a command economy compared with other types of economic systems?

• Government provides an equal standard of living for everyone.

• Business owners are free to make their own economic decisions.

• Decisions are based on customs and the way things have always been done.

• Government makes the decisions about what is produced.

What is a difference between a market economy and a command economy?

• Competition provides consumers choices in a market economy.

• Supply and demand determine prices in a command economy.

• The government ensures much competition in a command economy.

• The government selects what is produced in a market economy.

What do the economic systems in China and Cuba have in common?

• Economic decisions are based on customs

• Government controls or dictates what is produced.

• Government takes care of people's needs; the market takes care of wants.

• Supply and demand regulates the economy and determine price.