BUS 2-6 Compare and Contrast Types of Economic Systems

What are capital goods?

• Goods that are consumed by individuals for personal use.

• Physical assets used to produce goods and services, including machinery, equipment, buildings, and tools.

• Financial assets like stocks and bonds.

• Services provided by the government to the public.

Which of the following best describes capitalism?

• An economic system where the government owns all companies.

• An economic system where companies are privately-owned and driven by a profit-motive.

• An economic system where all resources are shared equally among people.

• An economic system where prices are fixed by the government.

What is a centrally planned economic system?

• An economic system where prices are determined by supply and demand.

• An economic system run by a centralized authority that allocates resources and sets prices.

• An economic system based on traditional customs and beliefs.

• An economic system where private individuals own all resources.

In which economic system is there no privately-owned property?

• Capitalism

• Socialism

• Communism

• Mixed Economic System

What are economic resources?

• Only natural resources like air and water.

• The components needed for production including natural resources, labor, capital goods, and expertise.

• Financial assets like money and stocks.

• Services provided by the government.

What is the study of economics?

• The study of how to make money quickly.

• The study of how individuals and societies make decisions about resources, production, distribution, exchange, and consumption of goods and services.

• The study of historical events and their impact on society.

• The study of government policies and their effects on the economy.

What is a market economic system?

• An economic system where the government controls all aspects of the economy.

• An economic system where production, wages, and prices are determined by supply and demand.

• An economic system based on traditional customs and beliefs.

• An economic system where all resources are shared equally among people.

What is a monopoly?

• A market where multiple companies compete equally.

• A market where one company controls the supply of a good or service.

• A market where the government sets all prices.

• A market where consumers have unlimited choices.

What is scarcity?

• The abundance of resources available to fulfill all wants.

• The reality that people’s wants always exceed the resources available to fulfill those wants.

• The situation where resources are evenly distributed among all people.

• The condition where there is no demand for goods and services.

Which economic system relies on cultural customs and traditions?

• Market Economic System

• Mixed Economic System

• Traditional Economic System

• Centrally Planned Economic System