Economics menu project types of economy

What is a Command Economy?

• CAPITALISTIC economy in which there is free competition and prices are determined by interaction of supply and demand

• An economic system COMBINING private and public enterprise.

• When production, investment, price, and income are determined centrally by a GOVERNMENT.

• A system that relies on customs, history, and time-honored beliefs.

What is one advantage of a Command Economy?

• Individual freedom for everyone

• Health and public services are available to everyone at little or no cost.

• The government rarely interferes.

• Able to adjust to change gradually

What is one disadvantage of a Command Economy?

• Requires large bureaucracy, which consumes resources

• Lower standard of living

• Does not produce enough public goods

• Workers and businesses face uncertainty as a result of competition and change.

What are the characteristics of a traditional economic system?

• Relies on government

• Driven by consumers

• built upon traditions, customs, and beliefs

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?

What is a characteristics of a market economy?

• lack of choice
• individual choice
• competition
• central ownership of property

Which type of economic system bases its decisions on custom?

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

Which type of economy is controlled by the government?

• Command
• Market
• Mixed
• Democratic

Which type of economy is run by the businesses & business owners?

• Command
• Mixed
• Communist
• Market

This economy would most likely have a dictator.

• Mixed
• Capitalism
• Socialism
• Communism