Economic Systems Practice

Labeling: Compare the two economic systems (Capitalism & Command) by dragging and dropping the correct answer for each category.

f

i

e

g

d

b

a

Laissez-Faire style approach

Traditional

Controls all resources, land and goods

Low Security & High Stability in Economy

High Security & Stability in Economy

Enforces rule of law in corporations

Free-Market

Central

Low Security & Stability in Economy

Have producers, consumers, & goods

Based on the image, this is most likely representing a ​ (a)   economic system. The person with the tentacles represents ​ (b)   controlling all the ​ (c)   . This distribution of goods is known as a ​ (d)   system.​

• centrally controlled
• a central government
• goods, lands and services
• communism
• capitalist
• free-market
• one large business person
• businesses and private sectors
• mixed
• a laissez-faire government

The flag in the image represents ​ (a)   . The flag holder is unhappy with a ​ (b)   . I know it is this system because it shows ​ (c)   with the men wearing top hats., also it shows ​ (d)   flying in the air which symbolizes profit. Companies shown are McDonalds, Apple, ​ (e)   , Amazon and Google.

• the European Union
• capitalist economic system
• big businesses
• money
• Starbucks
• Mixed economic system
• profit
• a communistic government
• McDonalds
• clouds

The United States has a _______________ economic system

• Mixed

• Command

• Capitalist

• Traditional

Which of the following countries has a centrally controlled economic system?

• China

• Japan

• North Korea

• Mexico

Which of the following is true about a Command Economy? Select all that apply.

• The economy is often stable

• It can be found in Cuba

• The government distributes all resources, jobs and land.

• It maximizes profits of private industries and businesses

• It relies on having no security or stability in the economy

Which of the following is true about United State's economic system? Select all that apply.

• It uses a mixed economic approach.

• Stability and security in economics can be a downfall

• Government is involved with regulations of working conditions

• It needs a strong central government to function properly.

• Businesses rely on a capitalist approach.

Which of the following is NOT true about a traditional economy?

• It is found in poor and rural areas.

• It was the first economic system.

• It has a strong central leader to control the economy.

• They are high in stability, equality and security.

Allan wants to start a business. In his country, the government tells him what type of business to start. What type of economic system does Allan live in?

• free market

• capitalism

• command economy

• mixed market economy

Which economic system allows for the most individual freedom?

• Mixed

• Market

• Command

• Traditional