Day 2: Economic Systems 36a

What is scarcity?

• problem of limited resources

• problem of renewable resources

Jesus went to a store. What did he see there that can be classified as goods?

• things that he can buy

• limited natural resources

What are the 3 economic questions that every country must answer?

• what to produce

• how to produce

• for whom to produce

• why to produce

In a traditional village where Ashli, Wendy, and Sandra live, economic decisions are made based on...

• customs, traditions, and beliefs of their ancestors

• competition between village businesses

Who makes all the economic decisions in a command economy?

• the government

• the workers

What is another word for consumers?

• sellers

• buyers

In a market economy, who decides what and how to produce?

• the government

• businesses

Jheferzon, Carlos, and Erik are studying about different types of economies in their social studies class. They learned that in North Korea, the government makes almost all of the economic decisions. What type of economy is this?

• market economy

• command economy

• traditional economy

What is bartering?

• trading goods without using money

• trading goods for money

• trading money for goods

• trading goods for services

On Moana's island, people decide what, how, and for whom to produce based on tradition and culture.

• traditional economy

• command economy

• market economy