Economics Systems

Match the description on the left to the appropriate economic system on the right.

• Free Market Economy

• 1. Private ownership of resources

  and property.

  2. Competition between producers.

  3. Consumer sovereignty.

  4. Profit motivated.

• Mixed Economy

• 1. Least demand for resources.

  2. People do the same kind of work as their parents and grandparents.

  3.Economy based on customs

  regardless of a person's ability or

  potential.

• Command Economy

• The government makes

  decisions for the country.

  2. There is a lack of consumer choice.

  3. There is no competition.

  4. There is central ownership of property and resources.

• Traditional Economy

• 1. Most common economy in the

  world today.

  2. Includes private

  sector and government control.

  3.Individuals and businesses operate as owners for the private sector.

The greater the amount of decision making that is left to a centralized authority (like the ______) the closer the system is to a command system.

• stock market

• voters

• investors

• government

"I might not be able to own my own business, but I don't have to worry about unemployment because the government always makes sure I have a job -- even though that job might not be my first choice." -- Jakob, age 25 In what kind of economy does Jakob most likely live?

• Traditional Economy

• Free Market Economy

• Command Economy

• Mixed Economy

People often perform the same type of work as their parents and grandparents, regardless of ability or potential in which economy?

• Command

• Free Market

• Mixed

• Traditional

The greater the amount of decision making that is left to the __________, the closer the system is to a free market economy.

• individual

• investors

• voters

• government

What is the MAIN IDEA of this chart?

• Market Governments

• Major Economic Systems

• Branches of the Economy

• How Government is Involved in the Economy

At Hugo Owens Middle School, my 6th Grade Civics class was making lemonade with imported Brazilian sugar and Italian lemons. We were selling it on the street in front of our school for $5 per an 8 oz cup. To remain competitive with us, Deek Creek Elementary then began selling lemonade for $2 per an 8 oz cup with Domino sugar and lemons from Food Lion. In order to remain competitive, we started selling lemonade for $1.50 per an 8 oz cup with Domino sugar and lemons from Food Lion as well." - James, age 12 In what kind of economy does James most likely live?

• Traditional Economy

• Free Market Economy

• Command Economy

• Martial Economy

Olivia normally works after school on Mondays and Wednesdays. Which is her opportunity cost if she adds Tuesday and Thursday afternoons to her work schedule?

• The extra money she could earn

• Additional hours she spends at the job

• The time she could spend studying

• The new clothes she could buy

We grow rice on the same land, in the same fields, with the same tools as my grandfather and his grandfather before him. This person most likely lives in what type of economic system?

• historical

• traditional

• free market

• command

Scarcity is the basic economic problem because --

• all expensive goods cannot be shared equally.

• all resources are limited, but wants are not.

• nations must spend money for resources they do not have.

• people face shortages on a seasonal basis.