Economic Systems/Structures

Which does not describe an economic system?

• An Economic system is a system of games in a country.

• An economic system describes how a country’s economy is organized.

• An economic system helps decide the 3 basic economic questions.

What would be an example of a Traditional economy?

• Germany in the 1920s

• Having the same job as your father and grandfather

• Basing all decisions off of history book.

(true or False) Most democratic countries fall into mixed economy category.

• True

• False

In a command economy, who holds power over the economy?

• The people
• The government 
• Beyonce
• The traditions of your ancesetors 

What are the 3 basic economic questions?

• What to produce? How To Produce? For whom to produce?

• Who to produce? Why you produce? Like to produce?

• Why to produce? Tell who to produce? Things to produce?

This happens when one company controls all output and pricing of a good or a service without government intervention.

• Oligopoly

• Market Economy

• Mixed Economy

• Monopoly

If the entire output of a market is produced by several sellers, the firm:

• is an oligopoly

• is a monopoly

A barrier to entry is

• An obstacle that makes it difficult for new firms to enter a market.

• A commitment on the part of big business to allow smaller companies to compete.

• An obstacle that prevents additional workers from entering an industry, such as a union.

If there are many firms in an industry producing goods that are similar but slightly different, this is an example of

• Monopoly

• Monopolistic competition.

An oligopoly is a market dominated by just a few firms.

• True
• False