Name:___________________________________________________________________ Period:_____
Chapter 3 section 3 questions ws
1. In an economic system, what are the three questions that must be answered?
2. What is GNP? What is GDP? How do they differ?
3. In an industrial system, what are the four stages? Give an example of each stage.
Example: primary industry- farming corn
4. What does a developed country have that a developing country does not?
5. In the chart below fill in the four economics systems and what they do. (one has been done for you)
Economic System
Traditional
What, how and for whom to produce
 Customs and traditions determine what and how to produce.
 Resources are usually shared.
 Many traditional systems use bartering to exchange good and
services.
6. What is a market economy? Who makes the decisions?
7. How is a market economy different from a command economy?
8. What is a traditional economy? Give an example.
9. What type of government do we have in America? What type of Economy? Why?
10. If you lived in a Communist country, what type of economy would you have? What type of
power would the government have?
11. What can limit the power of a government? Give three examples.
12. What are entrepreneurs? How do they contribute to a market economy?
13. What is a tariff? Why might a country use it?
14. How can countries be interdependent? Give two examples
Name:___________________________________________________________________ Period:_____
Chapter 3 section 3 questions ws
1. In an economic system, what are the three questions that must be answered?
What are you going to produce and what services are you going to provide
How are you going to produce it
Who will receive it
2. What is GNP? What is GDP? How do they differ?
Gross National Product (GNP) is the Value of all goods and services that a country provides in a
year. Gross Domestic Product (GDP) is the Value of goods and services provided in a country in a
year. GNP includes money made in other countries, GDP does not. GDP is the more accurate
measure of a countries income.
3. In an industrial system, what are the four stages? Give an example of each stage.
Example: primary industry- farming corn
Primary-farming cotton
Secondary- producing a t-shirt
Tertiary- selling the t-shirt
Quaternary- making the t-shirt better/stronger
4. What does a developed country have that a developing country does not?
Developed countries economics rely on a mix of agriculture, industry, and services, where
developing countries rely heavily on agriculture to make their money.
5. In the chart below fill in the four economics systems and what they do. (one has been done for you)
6What is a market economy? Who makes the decisions?
7How is a market economy different from a command economy?
8What is a traditional economy? Give an example.
6. What is a market economy? Who makes the decisions?
A market economy is when individuals (regular people) own the resources and choose what to
produce and how to produce it. Prices are set by the people not the government (the people
make the decisions).
7. How is a market economy different from a command economy?
In a market economy the people make decisions about what to produce and how to produce
it, in a command economy the government makes all of the decisions even sets prices.
8. What is a traditional economy? Give an example.
A traditional economy is when decisions are made based off of tradition and customs. In an
Islamic country because their religion does not approve of alcohol, they don’t sell it
(government regulations).
9. What type of government do we have in America? What type of Economy? Why?
We have a democracy or democratic gov’t with limited power with a market economy. We
have this type of economy and government because the people want the option to choose
their leaders and make their own decisions.
10. If you lived in a Communist country, what type of economy would you have? What type of
power would the government have?
If you lived in a communist country there would be a command economy and the government
would have unlimited power to make all decisions.
11. What can limit the power of a government? Give three examples.
Government can be limited by: laws, constitution, term limits people voting leaders out of
office, checks and balances (to make sure no one gets too much power).
12. What are entrepreneurs? How do they contribute to a market economy?
People who start their own business, they contribute to a market economy by producing
goods or providing a service to the people
13. What is a tariff? Why might a country use it?
A tariffs are taxes to increase price of imported goods to attract people to buy goods from
their own country.
14. How can countries be interdependent? Give two examples
Countries rely on each other for many things. The United States relies on China and Japan for
electronic imports, if we did not have a good relationship with the middle east we would not
be able to by gasoline from them, if we didn’t have gas, our country would stop working. We
are dependent on other nations for food imports as well.