Economic Systems

What is an economic system?

• The way a country handles its economic decisions

• A way to exchange cultural ideas

• A financial institution for managing money

In a traditional economy, production is primarily based on:

• Market demand

• Government regulations

• Traditions passed down through the generations

• Technological advancements

A traditional economic system is sometimes called a ________ system - a level of existence that barely supports life.

• subsistence

• communism

• socialism

• welfare state

Examples of ________ economies include villages in the Andes Mountains, Amazon Rainforest communities, the Aborigines of Australia, and rural areas in Africa.

• traditional

• command

• market

• mixed

People living in a _________ economy produce the same things that were produced by their ancestors. The items they produce are needed to carry on their daily lives.

• traditional

• command

• market

• mixed

The major problem for a traditional economic system is that there is little opportunity

for ___________.

• industrial goods

• growth or improvement

• consumer goods

• human services programs

This system gets its name because a small group of people is in command of all the others - the government owns and operates many or all of the means of production and distribution.

• traditional

• command

• market

• mixed

Which economic system is the influence of consumers on economic decisions is limited, and there is little or no competition?

• traditional

• command

• market

• mixed

The two primary types of _________ economic systems are communism and socialism.

• traditional

• command

• market

• mixed

In what type of economic system does the government owns the country’s resources and decides how those resources will be allocated.

• traditional

• command

• market

• mixed