Economic Systems

India chose to install a command economy when it first gained independence in 1947. Since that time, the government has loosened control over the economy, and added numerous aspects of the market system. Today the nation has the world's fourth largest GDP, and ranks as the second fastest growing economy in the world.

Which economic system describe modern day India?

• Command

• Market

• Mixed

• Traditional

Check all that apply to traditional economies.

• Rely on agriculture

• Depend on the government

• Follow traditions and customs of their ancestors

• Members know their role in society

• Depend on supply & demand

In a command economy, how is it determined what goods and services will be produced?

• Businesses decide what to produce on the basis of market conditions.

• Consumers decide through their behavior in the marketplace.

• Central government planning decides what will be produced.

• Supply and demand control production and price.

Which statement is a PRIMARY characteristic of a capitalist system?

• private ownership of property

• graduated income tax

• equal distribution of resources

• governmental regulation of business

Which type of government is most likely to have a command economy?

• Parliamentary Democracy

• Presidential Democracy

• Communist State

In a market economy, who answers the 3 economic questions?

• Buyers and sellers

• The government

• Traditions and customs

• Your mom

What type of Economic System does the U.S. mostly have?

• Market economy

• Command economy

• Traditional Economy

• Planned Economy

What type of Economic System does the U.S. actually have?

• Mixed economy

• Command economy

• Traditional Economy

• Planned Economy

In which economic system do people in business decide how things will be made or grown?

• Traditional

• Command

• Market

In which economic system do people in business decide how things will be made or grown?

• Traditional

• Command

• Market