Unit 1 Lesson 4 - Market and Mixed Economic Systems

Match the descriptions with the words. 1. marketplace 2. capitalism 3. self-interest 4. market 5. market economy 6. profit 7. mixed economy 8. consumers

1. the physical or virtual place where buyers and sellers go to conduct business 2. another economic term for a market economy 3. the idea that the buyer and seller both seek to do what is right for the other in order to guarantee their continued access to the other 4. the collective word for the consumers and sellers within a country 5. a capitalistic economic system in which the market determines the major questions of economic production and development 6. the main goal of those in business in a market economy 7. an economic system in which the government controls vital industries while allowing capitalist or market principles to exist in the rest of the economy 8. the individual buyer, seller, or trader of goods in an economic system

Which system provides little chance to succeed or gain wealth?

command

Select FOUR characteristics of a market economy system. Check all the apply.

consumer power in directing the economy private ownership of propery and business the pursuit of self-interest usually honesty in business dealings due to mutual self-interest

According to the tenets of the market economic system, the ___ has little to no role in the country's economy.

government

Which system has profit as a primary motivating factor?

market

In which system does the government control some vital industries while allowing free markets in others?

mixed

What is the goal of a mixed economic system?

prevent the abuses and shortcomings of both the command and market systems

Which system is often characterized as an agricultural economy with little technology?

traditional

Select THREE facts about Adam Smith. Check all that apply.

He was greatly influenced by the Enlightenment movement. The Scottish philosopher influenced the efforts and ideas of democracy advocated by our Founding Fathers. He authored The Wealth of Nations, a major work explaining that a free market would thrive under the idea of mutual self-interest.

What is a criticism of the market economy?

It does not promote fairness or take care of those who have difficulties succeeding within the system.

___ was an economic historian who heavily influenced the British Labour Party after World War I to move the country towards a mixed economy.

R.H. Tawney

What is the only way that capitalists say can ensure everyone has the chance to be wealthy?

The government leaves alone those who are wealthy.