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.

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

An advantage of a communism/planned is:

• high 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

Most countries in the world today are:

• Traditional Economies

• Free Market Economies

• Command Economies

• Mixed Economies

These economies utilize the benefits of free markets and government involvement.

• Traditional

• Mixed

• Market

• Command

This country is one of the most command economies in the world.

• Hong Kong

• United States

• North Korea

• South Korea