Types of Economies & Econ Sectors

What three questions need to be answered to determine an economic system?

• What to produce, how to produce it, and who gets it

• Where to produce, when to produce it, and why it is produced

• Who to produce for, how much to produce, and when to produce it

• Why to produce, where to produce, and who gets it

In a command economy, who controls the factors of production?

• The government

• Private individuals

• Foreign corporations

• Non-profit organizations

What is the concept of the invisible hand in a free market economy?

• Individuals and businesses meet society's needs when they seek their own self-interest

• Government controls all economic activities

• Consumers have no choice in the products they buy

• Businesses prioritize social welfare over profits

What is the role of the government in a free market economy?

• Maintain the rule of law, provide public goods and services, and regulate markets

• Control all aspects of production and distribution

• Ensure equal distribution of wealth

• Minimize government intervention in the economy

Which countries have mixed economies?

• Almost all countries

• North Korea and Cuba

• United States and China

• Denmark and Canada

In which economic system is the economy COMPLETELY controlled by the government?

• capitalism

• socialism

• communism

• anarchism

In which economic system do private individuals control the economy?

• capitalism

• socialism

• communism

• anarchism

Minimum wage laws and product-labeling laws would likely be found in which form of capitalism?

• laissez-faire capitalism

• mixed economy

• anarcho-capitalism

• feudalism

An organized way of providing for the wants and needs of a society.

• Mixed Economy

• Socialism

• Economic System

• Capitalism

Economic system in which private citizens own and use the factors of production to generate profits.

• Traditional Economy

• Capitalism

• Communism

• Market Economy