Economic Systems

Each society has to answer 3 questions to decide how to use its

• resources

• command economy

• free markets

• incentive

A family that has hunted or farmed for many years often is part of a

• invisible hand

• command economy

• traditional economy

• free market

Often people are not free when they live in a

• free market

• capitalist economy

• traditional economy

• command economy

Adam Smith, known as the _______, wrote one of the most important books about economics called Wealth of Nations.

• father of socialism

• father of communism

• father of modern economics

• godfather

_______ is an efficient economic system.

• traditional economy

• capitalism

• resources

• invisible hand

Something that enourages people to take an action is a(n) _____

• traditional economy

• invisible hand

• incentive

• command economy

Adam Smith believed governments should not be involved in _____.

• resources

• traditional economies

• free markets

• commnand economies

The Inuit society provides an example of a _____.

• traditional economy

• command economy

• planned economy

• capitalist economy

The economic system where people have a say in governments but where the government owns major industries is called

• command economy

• democratic socialism

• dictatorship

• realism

Money left over after all the costs of production have been paid

• profit

• competition

• invisible hand

• market