Economic Systems Web Quest Key
Navigate to the following web site: http://www.shmoop.com/economic-systems/faq.html.
Use this basic FAQ page provided by Schmoop University, Inc. to answer the following
questions.
1. What are the four types of economic systems that exist?
traditional, command, capitalist (or market), and mixed
2. Who controls the economy in a command economy?
Government
3. Who decides how to use and distribute resources in a command economy?
Government
4. What is an example of a type of command economic system?
Socialist economic system
5. How are prices and wages regulated in a command economy?
The government regulates prices and wages
6. In a market, or capitalist, economy, who makes the economic decisions?
Individuals in the marketplace
7. What determines how resources and goods are allocated and distributed in a capitalist
economy?
Interaction between individuals and companies in the marketplace
8. Who chooses where to invest personal resources?
Individuals in the marketplace
9. In a pure market economy, what is entirely absent?
Government
10. What is a mixed economic system?
Where elements of the market and command economy are combined
11. What kind of economy does America currently have?
Mixed
12. Has America always had the same type of economic system? If not, what types of
economic systems has it had?
No – when America was founded, it was closer to a pure market economy without
government interaction
13. Why was the government’s role in the American economy increased during the
Progressive Era?
The growth of large corporations in America distorted the playing field for businesses
14. How did the government’s role in the economic system change during the Great
Depression?
President F. Roosevelt introduced a new set of government programs under the New
Deal. These attempted to create jobs and insure income, instead of placing the
government in the regulation and oversight role.
15. How did the government’s role in the economic system increase during the 1960s?
Under the Great Society program, President L. Johnson sought to put an end to poverty
and racial injustice by expanding the safety net of social services through the offering of
food stamps and low-income rent subsidies. Also, the Office of Economic Opportunity
was created to assist in training and placing the unemployed.
Source for information: Shmoop Editorial Team. (November 11, 2008).Economic Systems FAQ.
Retrieved October 13, 2013, from http://www.shmoop.com/economic-systems/faq.html
Web Quest created by Tori Hale.