Economic Systems and the Circular Flow

A _____________ economy is completely determined and controlled by a central planning authority or the government

• Traditional

• Planned/Command

• Mixed

• Free Market

A ______________ economy is guided primarily by custom, habit, and ritual.

• Traditional

• Planned/command

• Mixed

• Free Market

A _________ economy is a market-based system in which the government is involved to some extent.

• Traditional

• Planned/command

• Mixed

• Free Market

_______________ would be an example of a modern mixed economy. (select all that apply!)

• Germany

• The United States

• North Korea

• Brazil

The closest thing to a planned/command economy today exists in:

• Soviet Union

• Czechoslovakia

• North Korea

• South Korea

This diagram is called a:

• Production Possibilities Curve

• Supply and Demand Curve

• Circular Flow Model

• Circular Motion Equation

What does point A represent on the Circular flow diagram?

• Households

• Businesses

• Factor Market

• Product Market

Where do factors of production (land, labor, etc) come from in the circular flow model?

• Factor Market

• Product Market

• Firms

• Individuals

In the circular flow diagram firms pay wages for which factor of production?

• Land

• Labor

• Entrepreneurship

• Raw materials

A person stocks shelves at a grocery store and receives a wage. They have completed an exchange in which part of the circular flow model?

• Individuals

• Businesss

• Factor Market

• Product Market