2.1 - Economic Systems - Assignment

A _______ economy usually stresses the equality of all citizens. A ______ economy aims to be self-sufficient. A ___________ economy relies more on bartering than money. In a _____ ______ economy, private businesses are encouraged.

- command - closed - traditional - mixed market

What is one characteristic of a command economy?

The government controls the prices of most goods.

What type of market is illustrated by this pie chart?

a mixed market economy

In which type of market would you find it the most difficult to buy goods from another country?

closed economy

You are horrified at our intending to do away with private property. But in your existing society, private property is already done away with for nine-tenths of the population; its existence for the few is solely due to its non-existence in the hands of those nine-tenths. —Karl Marx The Communist Manifesto Which economic system is supported by this passage's main argument?

command economy

Which type of market is the least likely to have an official currency?

traditional economy

Compare and contrast the goals of command and mixed market economies. Why are there many more mixed market economies than command economies in the world today? Give your answer in the form of a short paragraph.

Mixed market economies focus on preserving as much freedom to make economic choices as possible. Governments in these economies have limited involvement in managing and regulating the economy. In contrast, command economies are focused most on preserving and requiring equal opportunities, which means governments that greatly regulate the economy. More economic systems are geared toward offering producers and consumers the freedom to make economic choices, so mixed market economies are more common in the world today.

In a mixed market economy, who makes most of the daily economic decisions?

individual citizens