Types of Economies

A society and individuals will just continue to do what has always been done. This type of economy is...

• Traditional

• Command

• Market

In a traditional economy, all economic questions are answered by________ and _________.

• scarcity and costs

• supply and demand

• goods and services

• tradition and elders.

T or F? Traditional economies are usually found in rural communities or tribal life.

• True

• False

T or F? The three basic economic questions that every economy must answer are 1. What should be produced? 2. How should it be produced? 3. For whom should it be produced?

• T

• F

T or F? In a traditional economy you will see many new innovations and ideas.

• T

• F

In a command economy, who or what is in charge of answering the essential questions of the economy

• Citizens

• The goverrnment

• Buyers

• Sellers

T or F? In a market economy, people and businesses answer all of the basic questions of that economy.

• True

• False

T or F? A market economy is based on supply and demand.

• True

• False