Name: ____________________________________________
Date: _____________
Types of Economics Systems Graphic Organizer
Communism
Socialism
Market System
Who owns
resources?
Who decides how
resources will be
used?
What is the role
of the
government?
1. In a short paragraph, define the term economic systems. Then give two examples of different
types of economic systems. Then, give at least 2 similarities and/or differences between the
economic systems you chose.
2. In a short paragraph, choose which economic system you think is the most effective. Give the
definition of the economic system you chose. Be sure to give specific examples of why they
economy is efficient to support your answer.
Answer Key-
Communism
Socialism
Market System
Who owns
resources?
Government owns
everything
All resources are
privately owned
Who decides
how resources
will be used?
What is the role
of the
government?
Government officials
decide
Government owns
basic resources and
the rest is privately
owned
Government planners
and market forces
share the decisions
Government makes
decisions in only the
basic industries
Governments role is
limited—mostly to
ensure forces are free
to work
Government makes all
economic decisions
Market forces decide
1.
Sample response:
An economic system is the way a society uses its resources to satisfy its people’s unlimited wants. Two
examples of economic systems are market economies and command economies. Market economies are
different than command economies because in a market economy, consumers and producers are in control
of the resources in the economy. In command economies resources are owned and ruled by the
government. A similarity in a command and market economy is that their goals are both to meet the needs
of its people. But, a big difference is that command economies are often inefficient in this goal, while
market economies are more efficient.
2.
Sample response:
I think the most effective economic system is the mixed economy. A mixed economy is an economic
system that has elements of traditional, command, and/or market economies. I think it is the most efficient
economy because they can take the best parts of each individual economic system and combine them. For
example, in the United States, we use a lot of market economy characteristics but government is able to
intervene in order to help people who cannot work like the disabled and elderly, provide its citizens with a
military and even healthcare assistance. In a pure market economy, they cannot do this. It is a piece we
take from command economies that help those who cannot help themselves. We are also able to have
consumers buy what they want at low prices because of competition (a market economy characteristic)
but still have government regulations to make things fair for all (a command economy characteristic). It is
no wonder mixed economies are the most common in the world, as they are so efficient.