World Economic Systems

Which of these is NOT an economic system?

• Traditional

• Free Enterprise

• Communist

• Dictatorship

Custom and tradition determine what should be produced, how it should be produced, and for whom in a __________ economy

• Communist

• Socialist

• Traditional

• Free Enterprise

What is a Traditional Economy?

• Highly controlled by the government and the people have no say so

• Mildly controlled by the government and allows private ownership of businesses

• Not controlled by the government and is passed down from generation to generation

• Not controlled by the government but has an interaction between consumers and producers

T or F. Goods and services are produced to meet the needs of the members of the family or tribe when it comes to a traditional economy.

• True

• False

In a Traditional Economy what are the two major productions?

• Commercial Agriculture/Commercial Industries

• Subsistence Agriculture/Cottage Industries

• Supply/Demand

What is a Free Enterprise system?

• The interaction between consumers and producers

• All decisions of production and distribution are made by the Government

• Customs and beliefs are handed down from generations to another

• Private ownership of businesses

T or F. The interaction of supply and demand determines prices in a free market economy. When demand is high, the price goes up. If the supply is high but demand is low, the price goes down.

• True

• False

In a Free Enterprise system what are the two major production methods?

• Subsistence Agriculture/Cottage Industries

• Commercial Agriculture/Commercial Industries

• Supply/Demand

In a __________ people are free to take part in any business, buy any product, or sell any legal product.

• Private Property

• Profit Motive

• Free Enterprise

• Supply & Demand

In the U.S are we more consumers or producers in a Free Enterprise System?

• Consumers

• Producers