Economic Systems Class Note (Regular)

The traditional economic system is ____.

• Blends free market and command elements; both firms and government are responsible for goods/services

• Centered around family, tradition, and habit; change is slow.

• The government makes all decisions regarding production and distribution.

• Controlled by firms and households; consumers decide what is produced.

The command economic system is ____.

• Blends free market and command elements; both firms and government are responsible for goods/services

• Centered around family, tradition, and habit; change is slow.

• The government makes all decisions regarding production and distribution.

• Controlled by firms and households; consumers decide what is produced.

The free market economic system is ____.

• Blends free market and command elements; both firms and government are responsible for goods/services

• Centered around family, tradition, and habit; change is slow.

• The government makes all decisions regarding production and distribution.

• Controlled by firms and households; consumers decide what is produced.

The mixed economic system is ____.

• Blends free market and command elements; both firms and government are responsible for goods/services

• Centered around family, tradition, and habit; change is slow.

• The government makes all decisions regarding production and distribution.

• Controlled by firms and households; consumers decide what is produced.

In a traditional economic system, who is responsible for answering the question, 'What to produce?'

• The Government.

• Traditions, Values and Habits.

• Consumers & The Government

• Consumers

In a command economic system, who is responsible for answering the question, 'What to produce?'

• The Government.

• Traditions, Values and Habits.

• Consumers & The Government

• Consumers

In a free market economic system, who is responsible for answering the question, 'What to produce?'

• The Government.

• Traditions, Values and Habits.

• Consumers & The Government

• Consumers

In a mixed market economic system, who is responsible for answering the question, 'What to produce?'

• The Government.

• Traditions, Values and Habits.

• Consumers & The Government

• Consumers

Match the economic system to the real-world example:
Haiti (agriculture-dependent, poor access to electricity)

• Traditional

• Command

• Free Market

• Mixed

Match the economic system to the real-world example:
North Korea (focus on military, consumer shortages)

• Traditional

• Command

• Free Market

• Mixed