Name____________________________________________________ Per.______
Economic Systems
Economies
1. All economies answer these three basic economic questions:
1. ________________ to produce?
2. _______________ will they be produced?
3. _______________ will they be produced
We classify economic systems according to how they answer these questions.
There are ____________________ major types economies
A. __________________
B. ___________________
C. __________________
2. Traditional Economy “_________________________________________ ville”
a. A traditional economy is shaped largely ____________________ and/or
_____________________.
b. ____________________________ answer all 3 basic economic questions to make
all decisions
Advantages
1.
2.
3.
4.
Everyone ____________________________
Requires cooperation among citizens
No confusing changes
Not wasteful of resources
Disadvantages
1. ________________ new ideas and new
technology
2. ________________ rule breakers
3. lower level of lifestyle
Name____________________________________________________ Per.______
Traditional Economy
Private
Property
1. _____________ is
owned and shared by
the tribe
2. Only ____________
___________ decide how
to use property.
Freedom of
Enterprise
Competition/
Consumer Choice
Level of
Government
Involvement
___________ make all
decisions about all
businesses
2. No ___________
1. One kind of business per
community
2.________________________
because people
cooperate for what they
need_____________________
1. very ________ level of
government
___________________
3. ________________________
1. ___________
2. Tribal
___________________
_______________
everything
___________________
___________________
3. Command Economy “________________________________________________ville”
a. All resources and private property are
_____________________________________.
b. The ___________________________ answers all three basic economic
questions
Advantages
Disadvantages
1. _______________________
1. No individual ____________________
2. Everyone has a ________________
2. No reward for ____________________
3. __________________________ (Forced
equality)
3. No control
4. Forced to work hard
4. Capable of making fast changes
Name____________________________________________________ Per.______
Command Economy
Private
Property
Freedom of
Enterprise
1. No ________________
2. All property is used
for the ______________
_____________________
Competition/
Consumer Choice
Level of Government
Involvement
1. No ____________ 1. No ____________
freedom
1.
___________________
2. Government
leaders make all
decisions
2. All rules set by
government
2. No ____________
__________________
4. Market Economy “ _________________________________________ ville”
a. Market economies allow the people to __________________________
goods and services without ______________________
b. The choices of __________________________decide the answers to the 3
basic economic questions
Advantages
Disadvantages
1. Freedom of _________________
1. Often _____________________
2. Rewards creativity and ability
2. Sink or Swim
3. __________________________________
3. No _______________________________
against cheating business
4. Variety of products and services
Private Property
1. _________________
is owned by
individual people
2. No _____________
___________________
Market Economy
Freedom of
Competition/
Level of Government
Enterprise
Consumer Choice
Involvement
1. ______________
1. _______________ 1. __________________
________________
__________________ _____________________
2. Businesses
make what
people want
(demand)
2. Consumers
have ___________
________________
2. _______________/
___________________
control all choices
Name____________________________________________________ Per.______
Mixed Economy
In mixed economies, features from ____________________________________________
economies _____________________________________.
______________________________________________________________________________
3 Basics Economic questions are answered by _________________individuals and
the government.
Advantages
Disadvantages
1. Mixes business __________________
with government __________________.
1. Businesses must pay _____________ to
the government.
2. _______________ provided by the
government (welfare, social security,
etc.) provide a ____________________
2. People disagree about whether the
_____________________________________
_____________________________________
they get in return
Mixed Economies
Private Property
1. _________
property is
privately owned
2. ____________
property is
owned by the
government
Freedom of
Enterprise
1. ______________
Competition/
Consumer
Choice
1. Competition
and consumer
__________________ choice
___________ by
________________
government rules
by some
_________________
_________________
2. Rules meant to
_________________
Level of
Government
Involvement
1. Some
government
involvement to
________________
________________
2. All rules set by
government are
meant to
____________________
____________________
_________________