1.3 Economic Systems

What are the four types of economic systems?

• Capitalism, Socialism, Mixed Economy, Traditional Economy

• Capitalism, Communism, Feudalism, Mercantilism

• Socialism, Communism, Feudalism, Traditional Economy

• Capitalism, Mercantilism, Mixed Economy, Traditional Economy

Which of the following is one of the three economic questions every society must answer?

• How much money should be printed?

• What goods and services should be produced?

• Who should pay taxes?

• How should laws be enforced?

What is the second economic question that societies need to address?

• How should these goods and services be produced?

• When should goods be sold?

• Where should factories be located?

• Why should services be offered?

Who is considered in the third economic question regarding consumption?

• Who produces these goods and services?

• Who consumes these goods and services?

• Who regulates these goods and services?

• Who exports these goods and services?

What is the goal of economic efficiency?

• Making the most of resources

• Fair distribution of wealth

• Freedom from government intervention

• Innovation leads to economic growth

Which economic goal focuses on freedom from government intervention in the production and distribution of goods and services?

• Economic equity

• Economic freedom

• Economic security and predictability

• Economic growth and innovation

What does economic security and predictability ensure?

• Innovation leads to economic growth

• Fair distribution of wealth

• Goods and services will be available, payments will be made on time, and a safety net will protect individuals in times of economic disaster

• Making the most of resources

What is the focus of economic equity?

• Making the most of resources

• Fair distribution of wealth

• Freedom from government intervention

• Innovation leads to economic growth

How does economic growth and innovation contribute to society?

• Ensures goods and services are available

• Leads to a higher standard of living

• Fair distribution of wealth

• Freedom from government intervention

What is an economic system?

• A method used by a society to produce and distribute goods and services

• A type of government structure

• A financial institution

• A cultural tradition