Economic Systems

Every society must answer three economic questions. Select all that apply.

• What good and services should be produced?

• How should these goods and services be produced?

• Who gets these goods and services?

• What goods should be exported?

An economic system is the method used by a society to:

• produce and distribute goods and services.

• how much money to distribute.

• sell products at Target and Walmart.

• maximize profit.

A Traditional Economy

• does not adapt to change easily.

• is also called a mixed economy.

• is a country like North Korea.

• is also called Laissez Faire.

In a centrally planned economy,

• citizens can become entrepreneurs easily.

• citizens are incentivized to work hard.

• the government answers the three economic questions.

• is a country like the Australia.

In this type of Economic System, the government owns all (or most) of the resources.

• Mixed

• Traditional

• Market

• Centrally Planned

Some advantages of a communism are:

• low unemployment

• less income inequality

• lots of competition

• little corruption

In a Free Market economy, citizens are motivated by _________ to produce quality items efficiently.

• the Invisible Hand

• Profit

• Big Brother

• taco Tuesdays

This type of economic system often results in the most efficient production of goods that consumers want, produced at the lowest prices and highest quality.

• Communist

• Amazon

• Free Market

• Traditional

The concept that society's goals will be met as individuals seek their own self-interest.

• The Invisible Hand

• The Incredible Hulk

• The Scarcity Rule

• The Floating Hand

Adam Smith's Invisible Hand concept promotes:

• little government intervention

• government control of resources

• low competition

• central planners