Economic Systems

The ability of people to make their own economic decisions without interference from the government.

• Economic Equity

• Economic Freedom

• Economic Growth

• Economic Stability

An economic system in which decisions about production and consumption are based on custom and tradition.

• Traditional

• Socialism

• Capitalism

• Communism

Which of the following statements is NOT true of a traditional/subsistence economic system?

• Economic stability and economic security are the main priorities in this system.

• New ideas, new technology, and new ways of doing things are encouraged.

• People work to provide enough for their own needs and those of their families.

• People live much as their ancestors did hundreds or thousands of years ago.

Which of the following advantages was a traditional/subsistence economic system designed to provide?

• Individuals are generally free to make their own decisions about their jobs.

• Production of goods is highly efficient which increases their standard of living.

• The system is environmentally friendly – people striving to live in harmony with nature.

• Traditional economies continue to thrive as the modern economies exert an ever-growing influence.

Which of the following statements best describes a capitalist/market economic system?

• Healthcare and other public services are available to everyone

• People live much as their ancestors did hundreds of years ago

• Private ownership of businesses is encouraged

• All resources are meant to be equally distributed to everyone in society

Which of the following advantages was capitalism designed to provide?

• Job opportunities are often divided along gender lines.

• Many people can achieve wealth if they are willing to work hard.

• The government makes all major decisions about what will be produced.

• Volunteer work is highly profitable and is a very desirable career choice.

Which of the following statements best describes communist economic system?

• People only grow and produce enough for themselves and their family.

• Healthcare and other public services are available to everyone for little or no cost.

• People are free to own private property including farms, businesses, and housing.

• The three basic economic questions are answered by the government.

Which of the following advantages was communism designed to provide?

• Consumer satisfaction is high with a wide variety of choices available.

• Resources could be rerouted to where they were needed the most.

• The government offers financial incentives for hardworking individuals.

• There is a lot of individual freedom for people to choose a career.

Which of the following advantages was socialism designed to provide?

• People enjoy a wide range of individual freedoms as both workers and consumers.

• The primary goal is to accumulate wealth and goods for the ruling class.

Which of the following statements is NOT true of a socialist/mixed economic system?

• Nearly every country in the world has some degree of socialism including the U.S.

• Socialism only allows for private ownership of resources and property - there is no public property.

• The government uses a tax system to provide everyone with their basic needs.

• The system focuses on how society is improved for everyone.