ECONOMIC SYSTEMS
This portion of the test is meant to assess how well you understand the
basic concepts of economics, and how three different economic systems
address the basic economic concepts in their own unique ways, according
to their beliefs and values.
VOCABULARY:
For this section of the test the following vocabulary and terms have been used on
previous government achievement tests. For each term, try to match it to it’s correct
dominant economic system and then link it to the related concepts of the curricular
charts. If you do not know what a word means, find out what it means, and then how it
relates to the concept of economics, and which economic system it is dominant.























Individualism
Informed
decision
Low
unemployment
rates
Reliable
Land
Labour
Capital
Manufacturing
Socialist
Socialism
Model market
economy
Planned society
Regulate(d) (ion)
Resources
Private
producers
Consumers
Business cycle
Factors of
production/Mean
s of production
Working
conditions
Union leader
Union (labour
union)
Capitalism
Communism





















Superior
Government
official
Private sector
Public sector
Private
corporations
Crown
corporations
Private
enterprise
Efficiency
Economic
security
Economic
equality
Freedom
Economic
freedom
Economic
stability
Monopolies
Social safety net
Intervene
Economic
depression
Government
intervention
Production
targets
Incentives
Economic goals

























Economic
planning
Central planners
Government
control
Wages
Economic
competition
Obsolete
Unethical
Ethical
Negotiations
Processes
The state
The market(s)
Government
directives
Inefficient
Motivation
Management
Stifled
The economic
elite
Fluctuate
Recession
Boom and bust
Investment
Profits
Poverty
Basic economic
questions
1

































Collectivism
Centrally
planned
economy
Industrialization
Economic
conditions
Social conditions
Resources
Imposes
Limitations
Economic
Economy
Opposes
Economic
planning
Five-Year Plans
Collectivization
New economic
policy
Government
planning
Gosplan
Government
planners
Quotas
Capital spending
Consumer goods
Scarcity
State planners
Centralization
State agencies
Equality
Stability
Security
Government
ownership
Perestroika
Glasnost
Industrial sector
Agricultural
sector





































Inconsistent
Monotonous
Repetitive
Output
Promote
Standard of
living
Subsidy
Subsidize
Principles
Society
Dehumanized
Best interests
Production
Sectors
Rapidly
Comrades
Refuse
Identifies
Materialism
Agriculture
Profit
Profit motive
Incentive
Efficiency
Motivation
Government
intervention
Costly
Inefficient
Communism
Resources
Objective
Stabilize
State farms
Prohibited
Transportation
facilities
Economic
problems
Responsibility






























Consumer
choices
Complete
government
control
Relation
Role
Raw materials
Scarce
Channeled
Military
Wages
Government
housing
Stifled
Directives
Work ethic
Government
positions
Balance
Decline
Regional
freedom
Primary goods
Secondary
goods
Tertiary services
Capital goods
Free market
economy
Modified market
economy
Model economy
Model centrally
planned
economy
Illustrates
Confusion
Urban
Rural
Basic needs
2
Basic Economic Concepts
Listed below are the three basic economic concepts or principles which all economic
systems must address, whether they want to or not.
For each of the concepts below:
 Define them
 Draw a diagram
 Give examples
1. The Problem of Scarcity
2. The Factors of Production
3. The (Three) Basic Economic Questions
3
THREE ECONOMIC SYSTEMS: A TRIPLE
DOUBLE BUBBLE!
For this review activity you will be comparing the three different types of economic systems that
we learned about this year:
1. The American Market Economy
2. The Centrally Planned Economy of the former Soviet Union
3. The Mixed Economy of Canada
Use the curricular charts handed out for each of the units to identify the important concepts, terms
and related facts for the concept of economics and how each of these systems dealt with their
economic decisions.
For a concept like scarcity, you not only need to know and understand what it is, you have to be
able to identify how each of the different economic systems tries to address this universal
problem. How are their choices different and how are they the same?
What should you put in the TRIPLE BUBBLE?
1. You should be looking to your curricular charts under the concept of market economy,
centrally planned economy, mixed economy.
2. You should know the definition of each concept listed.
3. You should be able to apply the concepts to each of the economic systems.
4. You should know the similarities and the differences of each system and be able to
identify them in the diagram.
Some examples of questions that need to be addressed are:






What are the beliefs and values for each of the three economic systems??
How do each of the economic systems think the problem of scarcity should be
answered (hint: they each try to solve it differently)?
Who owns and controls the factors of production in each system?
How much government intervention exists in each system? Why does the
government intervene?? How does the government intervene?
What characteristics are unique to each system?
What role(s) do consumers, private business, labour and government play in each
economy.
4
Basic Facts About
The Model Market Economy
Generalization:
Beliefs and Values:
How does it Answer the
3 Basic Economic
Questions?
Role of Government
Corporations
1.
What goods & services
should be produced?
Monopolies:
2. How should the goods & services
be produced?
3. Who should receive the goods &
services?
Role of Entrepreneur:
Role of Labour:
Role of Consumers:
Quality of Life:
Standard of Living:
5
Factors of Production: Who Owns
How does it Solve the Problem of Scarcity?
and Controls Them?
LAND:
LABOUR:
CAPITAL:
The Business Cycle
How does the business cycle work in the market economy? Draw a diagram of it and label the
different parts of the cycle.
What is the difference between a PURE MARKET ECONOMY and the actual MARKET
ECONOMY
KEY WORDS
List all of the key words that can be associated with the functioning and characteristics of the
American Market Economy.
6
PLANNED ECONOMY
Generalization:
Factors of Production
Scarcity
1.
2.
3.
Role of Government
Role of Consumers:
Role of
Labour
7
CENTRALIZATION
Beliefs & Values
Quality of Life
Generalization:
+
-
8
THE MIXED ECONOMY OF CANADA
Generalization:___________________________________________________
________________________________________________________________
_____________
Beliefs & Values:
The Problem of Scarcity
Factors of Production
Who owns & controls them in a mixed
economy?
LAND:
LABOUR
CAPITAL
THE ROLE OF…
Business
Labour
Government
9
Role of Consumers
Labour-Management Relations:
PRIVATE SECTOR
PUBLIC SECTOR
10
11
ECONOMIC SPECTRUM
Complete the economic spectrum using everything you have learned about the 3 economic systems you have been taught.
12