Economic Systems_Chap_2

What is the main idea of the text?

• Different types of economic systems

• The impact of globalization on economic systems

• The history of economic systems

• Advantages of traditional economic systems

What are the three basic questions that all economic systems face?

• How to increase production, who should produce, how to distribute

• What to produce, how to produce, for whom to produce

• When to produce, where to produce, why to produce

• Who to produce for, how to market, what to innovate

Which economic system is based on customs, traditions, and historical practices?

• Market System

• Traditional System

• Mixed System

• Command System

What is the main characteristic of a command system?

• Combines elements of both command and market systems

• Based on customs and traditions

• Centralized planning by the government

• Driven by supply and demand

What is the main advantage of a market system?

• Stability

• Efficiency

• Central Planning

• Balanced Approach

What is the main disadvantage of a mixed system?

• Lack of Innovation

• Complexity

• Bureaucracy

• Equity

What is the main characteristic of a mixed system?

• Based on customs and traditions

• Centralized planning by the government

• Combines elements of both command and market systems

• Driven by supply and demand

What is the main disadvantage of a traditional system?

• Lack of Innovation

• Complexity

• Equity

• Bureaucracy

What is the main advantage of a command system?

• Balanced Approach

• Stability

• Efficiency

• Central Planning

What is the main disadvantage of a command system? (Select 3)

• Equity

• Bureaucracy

• Complexity

• Lack of Innovation