Economic Systems

What does economy mean?

• Flow of supply

• Flow of money

• Flow of demand

• Flow of traditions

Under the theory of capitalism, who is in control of production and profits?

• The private business owners

• The government

• All citizens

• The government AND private business owners

Under the theory of communism, who is in control of production and profits?

• The private business owners

• The government

• All citizens

• The government AND private business owners

Under the theory of socialism, who is in control of production and profits?

• The private business owners

• The government

• All citizens

• The government AND private business owners work together

Which economy is being described: there is no real money and individuals are required to trade or hunt

• Command

• Market

• Traditional

• Mixed

Which economy is being described: there are NO private business allowed and the government regulates everything

• Command

• Market

• Traditional

• Mixed

Which economy is being described: the government can intervene if it is a need for the people, otherwise business owners can continue to set their prices

• Command

• Market

• Traditional

• Mixed

Which economy is being described: the private business owners make all decisions for their companies and the government does not intervene

• Command

• Market

• Traditional

• Mixed

In a ________ economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

• Market

• Mixed

• Traditional

• Command

Market economies are primarily characterized by ________

• Formal cooperation among government, companies, and workers to achieve stable growth

• Heavy government spending and high taxation to pay for a range of social services

• Minimal governmental participation

• Restricted consumer powers