Economic Systems in the World

An economic system is..

• a way of organizing the production and consumption of goods and services.

• a way to decided how money moves around in a nation.

• buying and selling of goods.

• food, clothing and shelter.

The 3 fundamental questions of economics are

• Who should produce, what to produce and when to produce?

• Why to produce, What resources to use and Who to trade with?

• What to produce, How to produce and who gets what?

• Who gets land, how much to pay and when to pay?

Your education is a type of what?

• Land

• Labor

• Capital

• Resource

What decides the 3 questions in a traditional economy?

• supply and demand

• customs and traditions

• the amount of livestock

• equality

Which people group has a traditional economy?

• Maasai

• Swiss

• French

• Vietnamese

Who answers the 3 questions in a Market economy?

• government

• producers and consumers

• customs and traditions

• moral values

What is a disadvantage of market economies?

• growth

• efficiency

• instability

• marketing

In a command economy, who decides the 3 questions?

• government

• producers and consumers

• customs and traditions

• market forces

What is NOT a characteristic of a command economy?

• Little unemployment

• Public ownership of the means of production

• Lower standards of living

• Frequent economic recessions

What is a core problem with command economies?

• everyone has a share in the wealth

• market has stability

• govt officials are chosen from key families

• planners are less efficient at making economic decisions