M2 Unit 5: Economic Systems, Dependence, and Competition

It is an economic process under the cooperation of humans in creating and using resources to satisfy the needs of members of society.

• Economic cooperation

• Economic system

• Economic scheme

• Economic sustainability

It is sometimes called a free enterprise system or a market system.

• socialism

• mixed economy

• capitalism

• commercialism

Which is a characteristic that best describes capitalism?

• Private parties have rights to own property and factors of production or resources legally.

• The state owns the property and factors of production or resources of the society.

• Competition is allowed, but the state will intervene to ensure fair treatment.

It is a central planning system is an economic system that several economic units that operate under the control of the state.

• capitalism

• socialism

• mixed economy

Which characteristics best describe socialism?

• People lack incentives to invent something new.

• People have less freedom in operating business

• The state owns the property and factors of production or resources of the society.

• Consumers consume good quality products at cheap prices

It is an economic system where the state allows the private sector freedom in production.

• capitalism

• commercialism

• mixed economy

• socialism

TRUE or FALSE: In Mixed Economy the competition is allowed, but the state will intervene to ensure fair treatment and to prevent monopoly.

• True: will intervene

• False: will not intervene

• False: will refrain

• False: will not cooperate

It is a condition in which one country depends on other countries for economic reasons, or in a manner that they rely on one another.

• International economic dependence

• National economic dependence

• Regional economic dependence

This often leads to a change in economic relation between the trading countries.

• international investment

• international trade dependence

• international economic cooperation

This may be made from both sides of investing countries; example the US invest in Canada and vice versa.

• international trade dependence

• international investment

• international economic cooperation