The Role of Government in Economic Systems

Katia is an accountant in a government run business where she was placed after graduation.

• Communism

• Traditional

• Free Market

• Mixed

Joe owns a shoe store. At the end of the month Joe decides what to do with his profits.

• Communism

• Free Market

• Socialism

Sarah would like to become a doctor when she grows up. Unfortunately, she lives in a country where her job will be decided for her by the government.

• Traditional

• Free Market

• Mixed

• Communism

Ted is working towards his dream of becoming a lawyer by working at a law firm as a legal clerk.

• Free Market
• Traditional
• Command

Who or what answers the basic economic questions in a command economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

Who or what answers the basic economic questions in a free market economy?

• Individuals and Businesses
• Government
• Custom
• Individuals, Businesses, and Government

This economic system is based on individual freedom.

• Traditional

• Communism

• Market

If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a _____ economy. 

• Traditional 
• Market 
• Command 
• Mixed

In this type of economy, the individual decides who to sell their products to.  

• Traditional 
• Mixed 
• Market
• Command

Where does a free market economy work best?

• In a country with lots of government intervention
• In a country where businesses make their own decisions with no government help
• In a country with some regulations on businesses