5.1 ECON Economic Systems

1. Name any of the two questions we have to answer while evaluating economic systems?

• When will the goods and services be produced?
• Who owns property? What are the strengths and weaknesses?

• Where will the goods and services be produced?
• How will the goods and services be produced? and For whom will the goods and services be produced?

1. Name all six of the economic systems discussed in class.

• feudal
• anarchist
• Traditional , Agrarian , Market , Capitalism , Command , Socialism

• oligarchic

1. Who makes economic decisions in "Traditional economies"?

• The tribal leaders or the council .

• Government officials
• Religious leaders
• Customs, traditions, and beliefs

What was the “neolithic revolution”?

• Transition from settled agriculture to nomadic hunting and gathering
• Introduction of the printing press
• Discovery of electricity
• The neolithic revolution was the transition to agriculture/ agrarian economy. 

1. Who makes economic decisions in "Market Economies"?

• The consumers .

• Government and corporations
• Non-profit organizations
• Foreign entities

1. Name two strengths of "capitalism".

• Stagnation and inequality
• Corruption and inefficiency
• Incentive to work , freedom to choose profession and production . 

• Innovation and competition

1. Name two weaknesses of "capitalism".

• Worker empowerment
• Monopolies , illegal production practices . 

• Income inequality and exploitation of labor
• Fair distribution of wealth

1. Who makes economic decisions in "Command Economies"?

• Foreign governments
• The government or everyone . 

• Non-profit organizations
• Private individuals

1. Name two strengths of "socialism".

• Private ownership and competition
• Freedom and individualism
• Equality and social welfare
• No unemployment , universal equality 

1. Name two weaknesses of "socialism".

• Efficiency in resource allocation and promotion of competition
• Abundance of individual freedom and lack of social safety nets
• No incentives and no freedom in the market . 

• Lack of incentive for innovation and inefficiency due to centralized planning