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Economics Systems

Total questions: 15

Worksheet time: 16mins

Name
Class
Date
1.

Match the description on the left to the appropriate economic system on the right.

a)

1. Most common economy in the

world today.

2. Includes private

sector and government control.

3.Individuals and businesses operate as owners for the private sector.

1.

Mixed Economy

b)

1. Least demand for resources.

2. People do the same kind of work as their parents and grandparents.

3.Economy based on customs

regardless of a person's ability or

potential.

2.

Traditional Economy

c)

1. Private ownership of resources

and property.

2. Competition between producers.

3. Consumer sovereignty.

4. Profit motivated.

3.

Free Market Economy

d)

The government makes

decisions for the country.

2. There is a lack of consumer choice.

3. There is no competition.

4. There is central ownership of property and resources.

4.

Command Economy

2.

The greater the amount of decision making that is left to a centralized authority (like the ______) the closer the system is to a command system.

a)

stock market

b)

voters

c)

investors

d)

government

3.

"I might not be able to own my own business, but I don't have to worry about unemployment because the government always makes sure I have a job -- even though that job might not be my first choice." -- Jakob, age 25 In what kind of economy does Jakob most likely live?

a)

Traditional Economy

b)

Free Market Economy

c)

Command Economy

d)

Mixed Economy

4.

People often perform the same type of work as their parents and grandparents, regardless of ability or potential in which economy?

a)

Command

b)

Free Market

c)

Mixed

d)

Traditional

5.

The greater the amount of decision making that is left to the __________, the closer the system is to a free market economy.

a)

individual

b)

investors

c)

voters

d)

government

6.

What is the MAIN IDEA of this chart?

a)

Market Governments

b)

Major Economic Systems

c)

Branches of the Economy

d)

How Government is Involved in the Economy

7.

At Hugo Owens Middle School, my 6th Grade Civics class was making lemonade with imported Brazilian sugar and Italian lemons. We were selling it on the street in front of our school for $5 per an 8 oz cup. To remain competitive with us, Deek Creek Elementary then began selling lemonade for $2 per an 8 oz cup with Domino sugar and lemons from Food Lion. In order to remain competitive, we started selling lemonade for $1.50 per an 8 oz cup with Domino sugar and lemons from Food Lion as well." - James, age 12 In what kind of economy does James most likely live?

a)

Traditional Economy

b)

Free Market Economy

c)

Command Economy

d)

Martial Economy

8.

Olivia normally works after school on Mondays and Wednesdays. Which is her opportunity cost if she adds Tuesday and Thursday afternoons to her work schedule?

a)

The extra money she could earn

b)

Additional hours she spends at the job

c)

The time she could spend studying

d)

The new clothes she could buy

9.

We grow rice on the same land, in the same fields, with the same tools as my grandfather and his grandfather before him. This person most likely lives in what type of economic system?

a)

historical

b)

traditional

c)

free market

d)

command

10.

Scarcity is the basic economic problem because --

a)

all expensive goods cannot be shared equally.

b)

all resources are limited, but wants are not.

c)

nations must spend money for resources they do not have.

d)

people face shortages on a seasonal basis.

11.

One of the characteristics in the chart above is paired incorrectly with an economic system. Which economic system has the incorrect characteristic listed?

a)

Free Market

b)

Mixed

c)

Command

d)

Traditional

12.

The key factor in determining the type of economy a country has is the extent of --

a)

the goods and services produced compared to the number of goods and services consumed.

b)

each country's level of scarcity.

c)

the goods and services consumed compared to the number of goods and services produced.

d)

government involvement.

13.

Every country must develop an economic system to determine how to use its:

a)

limited productive resources

b)

producers to create enough goods and services for everyone

c)

economic decisions to solve the problem of scarcity

d)

democratic principles

14.

Most economies today, including the United States, are --

a)

struggling with inflation

b)

mixed economies

c)

traditional economies

d)

centrally planned economies

15.
Question Image

Based on the spectrum below, match the economic system with the appropriate letter to indicate where each economic system belongs.

a)

Command Economy

1.

A

b)

Mixed Economy

2.

B

c)

Free Market Economy

3.

C