CE11b

What determines a country’s economic system?

• How it uses its limited resources

• who runs the country

• the world economy

Economic decisions are based on custom and historical precedence People often perform the same type of work as parents/g-parent, regardless of ability or potential

• traditional

• command

• free market

• mixed

Private ownership of property and resources Profit motive Competition Consumer sovereignty Individual choice Minimal or no govt. involvement

• traditional

• free market

• command

• mixed

Centrally planned Centrally owned property /resources Consumer choice...NONE

• free market

• mixed

• command

• traditional

Individual and businesses are owners and decision makers for the private sector The govt. Is owner and decision maker for the public sector Govt. role is greater than in free market, but less than in the command economy Most economies today are mixed, including the U.S.

• free market

• traditional

• command

• mixed

Why is the U.S.classified as a mixed economy if it is considered primarily a free market?

• because of more govt. involvement

• we decided to change

• not enough govt. involvement

• global economy

earnings minus expenses...what is left after bills are paid

• wages

• debt

• expenses

• profit

consumers decide what will be produced and what they want to purchase.

• consumer sovereignty

• profit

• competition

• marketplace

which sector has individuals and businesses making decisions?

• public

• private

Which sector has govt. making decisions?

• public

• private