Economic Systems

What is the definition of economy?

• The way in which a society organizes the production and distribution of goods and services

• A system of exchanging goods and services

• The way resources are gathered in order to produce goods and services

• A person who has the idea of a business and gathers all the resources to start one

What are factors of production?

• The way in which a society organizes the production and distribution of goods and services

• A system of exchanging goods and services

• The way resources are gathered in order to produce goods and services

• A person who has the idea of a business and gathers all the resources to start one

What is supply?

• The amount of something that producers have available for sale

• The amount of a good or service that consumers are willing and able to buy

• An economic system in which the government controls a country's economy

• Economic decisions are made by individuals or the open market (supply and demand)

What is demand?

• The amount of something that producers have available for sale

• The amount of a good or service that consumers are willing and able to buy

• An economic system in which the government controls a country's economy

• Economic decisions are made by individuals or the open market (supply and demand)

What is a command economy?

• The amount of something that producers have available for sale

• The amount of a good or service that consumers are willing and able to buy

• An economic system in which the government controls a country's economy

• Economic decisions are made by individuals or the open market (supply and demand)

What is a market economy?

• The amount of something that producers have available for sale

• The amount of a good or service that consumers are willing and able to buy

• An economic system in which the government controls a country's economy

• Economic decisions are made by individuals or the open market (supply and demand)

What is a mixed economy?

• An economy in which decisions are based on customs and traditions

• Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

• A system in which the government owns most businesses and factors of production

• Combination of mostly market economy with some command economy

What is socialism?

• An economy in which decisions are based on customs and traditions

• Facts about a place that help you understand a country and how the economy is doing

• Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

• A system in which the government owns most businesses and factors of production

What is communism?

• An economy in which decisions are based on customs and traditions

• Facts about a place that help you understand a country and how the economy is doing

• all property is publicly owned and each person works and is paid according to their abilities and needs

• free enterprise

When the supply of a product or service goes up and the demand stays the same the Price will typically do what? 

• rise
• fall
• stay the same
• Consumer