Economic Systems Review

Each society answers the three basic economic questions based on

• Its unique combination of values and goals

• the number of factor payments

• its degree of economic growth

• the desire to achieve economic freedom

A system to protect people experiencing unfavorable economic conditions

• innovation

• standard of living

• safety net

• profit

The income people receive for supplying factors of production

• profit

• safety net

• innovation

• factor payments

An economic goal where a system makes the most of scarce resources using resources wisely and productively

• Economic Freedom

• Economic Equity

• Economic Efficiency

• Economic Growth

the method used by a society to produce and distribute goods and services

• economic system

• standard of living

• innovation

• traditional economy

To improve its standard of living, a nation's economy must

• remain stable

• grow through innovation

• achieve economic equity

• allow the central government to make economic decisions

the level of economic prosperity

• standard of living

• economic freedom

• factor payments

• profit

An economic goal where a society knows that goods and services will consistently be available.

• Economic Security

• Economic Sustainability

• Economic Equity

• Economic Freedom

An economy that relies on habit, custom, or ritual to answer economic questions

• command economy

• Traditional economy

• Market economy

• Mixed economy

An economy where buyers and sellers determined what is in demand and what is supplied

• traditional

• command

• market

• mixed