Economy Types CFA

Categorize each description under Market, Communist, Socialism, or Traditional Economies:

Groups:

(a) Market Economy

,

(b) Communist Economy

,

(c) Socialism Economy

,

(d) Traditional Economy

• Also referred to as a Mixed Economy

• Property is privately owned

• Economic decisions are based on customs and traditions

• Tends to use a bartering system

• Property can be private & publicly owned

• The govt decide what to produce, how much to produce, and how to produce items

• Businesses decides what to produce, how much to produce, and how to produce items

• Property is publicly owned

• The government makes only big econnomic decisions

• Also referred to as Command Economy

• Also referred to as Free Enterprise or Capitalism

What economy has it to where the government decided how many computers will be made?

• Market Economy

• Communist Economy

• Socialism Economy

• Traditional Economy

What economy do people tend to have the same jobs that their parents did?

• Market Economy

• Communist Economy

• Socialism Economy

• Traditional Economy

What economy would it be if the government had to step in to decide to sell land for the use of oil rigs when usually it would be handled by the general population?

• Market Economy

• Communist Economy

• Socialism Economy

• Traditional Economy

Answer explanation

In a socialist economy the government will step in and make only big economic decisions. Otherwise the people get a say so.

What economy lets people start their own businesses in order to make a profit?

• Market Economy

• Communist Economy

• Socialism Economy

• Traditional Economy

Answer explanation

The thing that drives a market economy is the fact that people want to make a profit (money). In a market economy people are free to try to open their own business.

Match the official term to the meaning:

• The amount of product that is available for people to buy.

• Property means:

• Anything of value such as land, buildings, and items.

• The government determines consumer availability & prices means:

• That consumers are stuck with what the government decides

• Supply means:

• Factories make the amount of goods that the government set (quotas)

• Industrial production has to meet government quotas means:

A communist economy will usually have:

• Variety of brands

• Limited amount of brand options

A market economy will usually have:

• Variety of brands

• Limited amount of brand options