Economic Systems & Factors of Production

What is a key characteristic of a Traditional economic system?

• Government control

• Bartering system

• High technology use

• Large corporations

In a Free Enterprise (Market) system, who has the power?

• The government

• The workers

• The buyer (consumer)

• A small group of elites

Which of the following is a positive aspect of a Traditional economic system?

• High unemployment

• Keeps traditions and customs alive

• High taxes

• Poor quality goods

What is a negative aspect of a Free Enterprise (Market) system?

• Limited growth opportunities

• High taxes

• Can lead to high unemployment

• No wastage of goods

In a Socialism (Mixed) system, who has the power?

• The government

• The workers, as in the entire group

• The buyer (consumer)

• A small group of elites

Which economic system is characterized by the government owning and controlling all economic activities?

• Traditional

• Free Enterprise (Market)

• Socialism (Mixed)

• Communism (Command)

What is a positive aspect of a Socialism (Mixed) system?

• High unemployment

• All citizens have access to education and healthcare

• No government involvement

• High focus on making money

Which of the following is a negative aspect of a Communism (Command) system?

• Creates a classless society

• Very low unemployment

• Can lead to dictatorships

• Lots of economic growth

What is an example of a country with a Traditional economic system?

• United States of America

• Vietnam

• North Korea

• Papua New Guinea

Which economic system is based on supply and demand?

• Traditional

• Free Enterprise (Market)

• Socialism (Mixed)

• Communism (Command)