Story of Economics

What type of economy is found in Commuville where the government makes all the decisions about production and distribution?

• Command economy

• Mixed economy

• Free enterprise economy

• Traditional economy

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Remembering

In Socialtown, what encourages business owners to create better products and offer lower prices?

• Government regulations

• Lack of resources

• Competition among businesses

• High taxes

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Understanding

Describe the main characteristics of a free enterprise economy as observed in Freeville.

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Understanding

How does the concept of supply and demand affect the production of goods in Socialtown?

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Applying

What are the benefits and drawbacks of a command economy as seen in Commuville?

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Understanding

Which economic system allows individuals to own businesses and make profits while the government provides essential services?

• Command economy

• Mixed economy

• Free enterprise economy

• Traditional economy

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Remembering

Explain how competition in a free enterprise economy can lead to innovation and variety in products.

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Applying