Economics CHAPTER 2 Section 1 economic systems and decision making Name that System! Determine for each slide whether the economic system being illustrated is Traditional OR Command OR Market 1. Actions in this type of economy relate to ritual, habit and custom. TRADITIONAL ECONOMY 2. A strength of this type of economy is its ability to rapidly change in a short period of time COMMAND ECONOMY 3. A weakness of this economy is its failure to provide for the weak, the sick, the old and the very young who cannot be productive Market economy 4. Name a stable, predictable and continuous economic system TRADITIONAL ECONOMY 5. This economic system does not meet the needs and wants of citizens because the central authority makes all decisions, rather than the individual COMMAND ECONOMY 6. This economic system discourages new ideas or change TRADITIONAL ECONOMY 7. This economic system provides a high degree of consumer satisfaction because individuals make most of the Market economy 8. This economic system offers a variety of goods and services because new ideas are encouraged Market economy 9. This economic system lacks incentive for individuals because a central authority controls the factors of production; there is no private property COMMAND ECONOMY 10. This economic system has a notable lack of government interference Market economy 11. Which system would Adam Smith support? Market economy 12. Which system would Adam Smith most disagree with because of Laissez-Faire? COMMAND ECONOMY 13. “WE COULD SELL OUR PRODUCTS FOR PERSONAL PROFIT IN WHICH SYSTEM?” - Name that system! Market economy 14. “Our grandmothers taught us to weave, and we have taught our daughters.” - Name that system! TRADITIONAL ECONOMY 15. “We slaughter the hogs because the government tells us to. I hate this job. I’d rather be a carpenter.” Name that system! COMMAND ECONOMY 16. “We slaughter hogs better than any of our competitors!” Name that system! Market economy 17. “We’ve been quilting for our community for decades. We’re very talented.” – Name that system! TRADITIONAL ECONOMY 18. “I really hate quilting. I wish I could go fishing instead, but girls don’t fish in our community.” – Name that system! TRADITIONAL ECONOMY 19. “We wait for the government to give us rations of meat, but there is never enough.” – Name that System! COMMAND ECONOMY 20. “People who cannot work are not rewarded in this system.” – Name that system! Market economy 21. “Goods are moving in and out of our country every day because of consumer demand.” – Name that System! Market economy