2.  China  United States  Germany  South Africa  Canada

3.  China-Mixed Economy (Leans toward Command)  United States-Mixed Economy (Leans toward Market)  Germany-Mixed Economy  South Africa-Mixed Economy  Canada-Mixed Economy  Did these answers surprise you? Why or Why not?

4.  The economy is run by an authority and not the market.  The authority tells people what to make, how to make it and how much to make.  The authority controls the economy through quotas, rationing and price and wage controls.

5.  Maximize resource mobilization for the benefit of the country  Radically transform the socio-economic system for better economic equality  Organize the economy

6.  Effective and rapid economic modernization.  Attempted economic equality

7.  Inefficiency of economy  No “material incentive” or “profit motive”

8.  Why might people want a Command Economy?  Why aren’t there more Command Economies in the World?

9.  Market economies emphasize private property, self interest and freedom of enterprise and choice  This is accomplished through limited governmental role in the economy, no price controls and promotion of competition.

10.  Full Employment  Low Inflation  Economic Growth  Efficiency of the Economy

11.  Efficiency in producing what people want to buy at the lowest cost  Promote economic growth  Free entry and exit of businesses

12.  Low Economic Equality  Full Employment?

13.  How does a Market Economy fulfill its purposes?  Why would the purposes of a Market Economy be necessary in a modern economy?

14.  Hard to define  But, it combines economic freedom with government regulation  People have the freedom to produce what they want in the manner they want  The government can regulate businesses, like passing minimum wage laws

15.  Have the public and private sector work harmoniously together  Businesses can perform efficiently while the government can make sure those businesses are being fair and to limit negative externalities

16.  Allows for competition among businesses  But, government regulation protects the public from the worst aspects of economic freedom.  Taxes help pay for government programs

17.  The wrong regulation can be catastrophic to the economy  Businesses have no say in how much they get taxed

18.  Why would businesses need regulation?  How does a Mixed Economy limit the worst aspects of a Command Economy and a Market Economy?