2.1 Economics- Economic systems

Societies embrace various economic systems to deal with the fundamental problem of ________________.

In a __________ economy, production questions are answered by the government.

In a _________ economy, the basis economic questions are answered by the buying and selling that takes place between consumers and businesses.

_____________ is a system in which government owns and controls some, but not all, productive resources

The way the 19th century inuit divided the "spoils of the hunt" demonstrates a ________ economy.

Which statement describes a disadvantage of a command economy?

• Items tend to be produced soley for the sake of profit.

• It cannot "change direction" easily if the need arises to do so.

• It does little to help the disadvantaged.

• Nothing stops the government from producing things people don't want/need.

How is the principle of "there is no such thing as a free lunch" illustrated in a socialist economy?

• Socialist economies tend to collapse when they become too large.

• The marketplaces in a socialist economy are free for anyone to enter.

• Socialism tends to offer extensive government services but have high taxes.

• socialism offer advantages to the wealthy at the expense of the poor.

Which of the following is a disadvantage of a market economy?

• It sustains a high degree of uncertainty.

• It restricts personal freedom

• It discourages creativity and new ideas for doing things

• It does not allocate resources as efficiently as other economies.

Which of the following states an advantage of a traditional economy?

• Property rights are based on tradition

• Everyone knows exactly what their function is.

• Creativity and original though are rewarded.

• There's no bureacracy to interfere with organizing the economy.

What kind of economy offers uniformity in wages regardless of individual productivity?

• all economies

• traditional economies

• market and free enterprise economies

• command and socialist economies