Chapter 3

Chapter 3
Economic Systems
Explain the following
 Economic freedom
 Economic efficiency
 Economic equity
 Economic growth
 Economic stability
 Economic security
1. Give some examples (three) of how the United States
makes choices of what to produce.
2. How does the U.S. make choices on how to produce
products? Give three examples.
3. What are the ways (4) goods and services distributed?
4. What are the 6 economic goals most societies try to
5. Look at figure 3.2. Why do you think states like TX, FL,
and NM have high amounts of uninsured? Why do you
think 18-24 year olds are highest age group uninsured?
Country Project
Pick a country and list and describe the following
1. History (brief)
2. Current economic status
3. Type of government
4. What drives the economy
a. Resources
b. Products they produce
c. How do they trade
d. Human capital (literacy, graduation rate)
5. Which economy is your country?
a. Traditional economy
b. Command economy
c. Mixed/Market economy
Ethiopia, Uganda, Saudi Arabia, China, Vietnam, Japan,
Australia, Germany, Mexico
Who Decides What in Different Economic Systems
Explain the following
 Traditional economy
 Command economy
 Market economy
Put the following countries into one of the above categories
1. Australia, 2. China, 3. Ethiopia, 4. Germany, 5. Japan,
6. Mexico, 7. Saudi Arabia, 8. Uganda, 9. Vietnam,
10. Canada
1. Which economy is most like the United States?
Which one is most different? Why?
2. What made market economies grow in the 1800’s?
What term become synonymous with the free
market system?
3. What author and what work proposed the alternative
called Socialism?
4. What is the benefit of socialism and communism?
What do YOU think of these systems?
5. What was the flaw of the Soviet socialist economy?
6. Draw and label the circular flow of a market
7. What are the goals of a traditional, command and
mixed economy? pg. 46
How Do Mixed Economies Divide the Decision Making?
 Mixed economy
 Public works
1. What governmental institutions are needed at the
2. How do some governments step in when the market
is operating in an unacceptable manner?
3. What are the advantages and disadvantage of public
works projects?
4. Draw and explain the circular flow model of a
mixed economy
5. What makes Australia one of the freest markets in
the world? What makes North Korea one of the
most repressive? How does this affect the U.S.?
6. What do the countries rated “free” have in common?
How is this important to the United States?
What Are the Key Characteristics of the U.S. Economic
Free enterprise system
Laissez-faire (French for “let do”)
Property rights
Intellectual property
1. Get with a group and create a visual
representation of the U.S. economic system.
2. Use pages 50 to 52 to help you and use 4 of the
7 themes in your representation.