1. Economic Systems Notes
An ________________ describes how a country’s economy is organized.
because of the problem of ____________, every country needs a system to determine how to use its productive resources
An economic system must answer three (3) basic questions…

2. Economic Systems ________________________________?
What kinds of goods and services should be produced?
What productive resources are used to produce goods and services?
_________________________________?
Who gets to have the goods and services?
The way a society answers these questions determines its economic system.

3. Four Types of Economic Systems:
1. _________________ Economy
2. _________________ Economy
3. _________________ Economy
4. _________________ Economy (Market + Command)

4. an economic system in which economic decisions are based on
Traditional Economy
an economic system in which economic decisions are based on
_____________________________
People will make _________________ and will do the same work their ___________________did.
exchange of goods is done through ____________ (trading without using money)

5. Who decides what to produce?
Traditional Economy
Who decides what to produce?
people __________________and make what their _____________ made
Who decides how to produce goods & services?
people grow & make things the
_________________________did
For whom are the goods and services produced?
___________________who need them

6. villages in _______________________ ___________________in Canada
Traditional Economy
Examples:
villages in _______________________
___________________in Canada

7. _____________ makes all economic decisions & owns most of the property
Command System
_____________ makes all economic decisions & owns most of the property
_________________________determine such things as the prices of goods/services & the wages of workers
This system has not been _____________& more and more countries are abandoning it.

8. Command Economy Who decides what to produce?
____________makes all economic decisions
Who decides how to produce goods and services?
________________ decides how to make goods/services
For whom are the goods and services produced?
whomever the ________________ decides to give them to

9. Command System
Countries with __________________ governments have command economies
Examples:
_______________________
______________________
*____________________________________ ___have moved away from having a command economy since Now they have a mixed economy.

10. Market Economy
an economic system in which economic decisions are guided by the changes in prices that occur as ______________________ _________________________interact in the market place
Based on what the people want! And how much they’re willing to pay!
most of the resources are owned by ___________________________________
economic decisions are based on __________________________ (competition between companies)

11. Market Economy Who decides what to produce?
businesses base decisions on ___________ ______________________________(PRICE)
Who decides how to produce goods and services?
______________________ decide how to produce goods
For whom are the goods and services produced?
________________________

12. Market Economy
There are _________________________________ _____________, but the United States is close.

13. Mixed Economy _______________________________= Mixed
There are no pure command or market economies. To some degree, all modern economies exhibit ____________________ ______________________________and are often referred to as mixed economies.
Most economies are closer to one type of economic system than another.
_______________________________and determine what and how to produce, but the ________________________________certain industries.

14. Who decides what to produce? ______________________
Mixed Economy
Who decides what to produce?
______________________
Who decides how to produce goods and services?
_______________but the government _______________________________
For whom are the goods and services produces?

15. Mixed Economy
__________________________fall in this category (there are no truly pure market or command economies).
Examples:
__________________

16. Which economic system is best?
The _______________has proven to be best because it promotes the goals of growth, freedom, & efficiency.
Citizens are free to own their own property but are protected from corporate corruption.
________________________systems sometimes offer more security but are not nearly as strong in efficiency, growth, freedom, and environmental quality.