Economics Unit 5 - Economic Systems + Business Organizations

The 3 basic economic questions are ......

• What to produce

• When to produce

• How to produce

• How much to produce

• For whom to produce

A command economy characteristic is that...

• can change direction drastically and rapidly

• market controlled decision making

• individual freedom for both producers and consumers

• consumers play a key role in what is produced

A ________________ economy depends on supply and demand and affords a great deal of freedom to producers and consumers.

• mixed

• market

• command

• traditional

A _________________ economy can shift resources quickly and some might argue that it discourages individual incentive.

• mixed

• market

• command

• traditional

A _________________ economy promotes equality and combines private and public enterprise.

• mixed

• market

• command

• traditional

A ____________ economic system relies on a central authority to make economic decisions.

• command

• mixed

• market

• traditional

A ____________________ economic system is a combination of the other economic systems. It is the most commonly used economic system in the world.

• mixed

• market

• command

• traditional

The following is an example of _______________ role of government...

In the United States, every person has the same opportunities.

• promotes equity

• promotes security

• private proparty

• ensures competition

The following is an example of _______________ role of government...

The government can enact policies to insure that the economy continues to grow. One method they employ is making sure all children receive an education.

• promotes equity

• ensures competition

• private property

• economic growth

The government providing social services and programs like public libraries, roads, public education (the school you’re in right now!) is an example of America's ______________________.

• mixed economy

• market economy

• command economy

• traditional economy