Chapter 3: Warm Up #9 – Mixed Economy in the U.S. and the Key Characteristics of the U.S. Economic System Name: _____________________________ Period: _____ 1. On the scale below, place the United States according to your understanding of the degree of economic freedom in our country. Below the scale, explain your placement. Command Economy Market Economy Your explanation: 2. How does a command economy differ from a market economy when addressing the three basic economic questions (what, how, and for whom to produce goods and services out of available factors of production?) 3. Explain/define: MIXED ECONOMY - 4. Since every economy in real life, including the one in the United States, is a mixed economy, provide at least one example of a command economy's application/presence in the United States and at least one example of a market economy's application/presence in this country. 5. The key characteristics of the US Economic System include: (a) Economic Freedom (b) Competition (c) Equal Opportunity (d) Binding Contracts (e) Property Rights (f) Profit motive (g) Limited government Select any three out of the seven characteristics above. For each selected characteristic, explain its effects on the U.S. economy and its citizens. In your explanations, include possible negative effects of each characteristic's absence from the U.S. Economy.