Economic Systems

What are the 3 basic questions that every economy must answer?

• What goods and services to produce?

• When goods and services need to be produced?

• Why goods and services need to be produced?

• Who gets the goods and services produced?

• How goods and services will be produced?

What are the three basic types of economic systems?

• Command Economies

• Market Economies

• Holistic Economies

• Traditional Economies

• Conservative Economies

In a traditional economy how are the 3 basic questions answered?

• Government Planners

• Agreements between buyers and sellers

• Fighting among interested groups

• Customs and Traditions

• Voting on methods of production

In a command economy how are the 3 basic questions answered?

• Government Planners

• Agreements between buyers and sellers

• Fighting among interested groups

• Customs and Traditions

• Voting on methods of production

In a market economy how are the 3 basic questions answered?

• Government Planners

• Agreements between buyers and sellers

• Fighting among interested groups

• Customs and Traditions

• Voting on methods of production

Because there are no countries that are completely one type of economic system, we say that ALL countries have an economy that is......

• mixed

• hybrid

• mandated

• decentralized

• centralized

Which type of economic system do we see very little of in our modern world?

• Command Economies

• Market Economies

• Holistic Economies

• Traditional Economies

• Conservative Economies

Towards which end of the economic spectrum would the following country fall: The government owns most of the property and sets the wages for workers. Those employees who exceed their quotas can sell the excess for extra money.

• Market

• Command

• Traditional

Toward which end of the economic spectrum would you place the following: I decided to open my own clothing company with designs that I created. I'm required to pay my employees a minimum wage, but I can hire whomever I feel is qualified.

• Market

• Command

• Traditional

Toward which end of the economic spectrum would the following country fall: Government Planners felt that our country needed more soybeans, so the farmers were directed to increase the number they planted.

• Market

• Command

• traditional