3 Economic Systems

What is scarcity?

• problem of limited resources

• problem of unlimited resources

• problem of natural resources

• problem of renewable resources

What is an economic system?

• A country's plan for how to use its limited resources.

• A country's plan for how to use its unlimited resources.

• A country's plan for how to make more money.

• A country's plan for how to get more resources.

What are goods?

• things that you can buy

• actions that people do for you

• limited natural resources

• actions that you do for people

What are services?

• things that you can buy

• actions that people do for you

• limited natural resources

• things that you can sell

What are the 3 economic questions that every country must answer?

• what to produce

• how to produce

• for whom to produce

• why to produce

What are the 3 basic economic systems?

• traditional

• command

• market

• mixed

In a traditional economy, economic decisions are made based on...

• customs, traditions, and beliefs of the past

• the needs of the autocratic government

• the forces of supply and demand

• competition between businesses

What is bartering?

• trading goods without using money

• trading goods for money

• trading money for goods

• trading goods for services

Which of these is an example of bartering?

• trading food for water

• trading food for money

• trading food for a service

• giving away free food

Who makes all the economic decisions in a command economy?

• the government

• the workers

• the consumers

• the citizens