Traditional
Who decides what to produce in a traditional economy?
Customs and long-standing family/community roles
Who decides what to produce in a command economy?
The government/central planners.
Who decides what to produce in a market economy?
Private individuals and firms based on consumer demand and profit.
Who decides what to produce in a mixed economy?
Mostly markets, with government influence in key areas.
You see price tags changing at the grocery store after a bad harvest. Which system explains this and why?
Market—prices adjust with supply/demand.
Who decides how to produce in a traditional economy?
Established methods handed down through generations.
Who decides how to produce in a command economy?
The government sets production methods and input allocations.
Who decides how to produce in a market economy?
Firms/businesses/corporations/mom and pop stores choose cost-efficient methods to compete.
Who decides how to produce in a mixed economy?
Firms decide, but must follow regulations (safety, environment, labor).
government launches a nationwide jobs program to fight unemployment. Which system is that?
Command-style policy within a mixed economy.
Who typically receives goods/services in a traditional economy?
Distribution is based on tradition, kinship, and community needs.
Who receives goods/services in a command economy?
The state directs distribution—often via quotas or rationing. The general population then receives the goods.
Who receives goods/services in a market economy?
Those who are willing and able to pay
Who receives goods/services in a mixed economy?
Market distribution plus government programs (e.g., public education, SNAP, Social Security).
A community passes down fishing techniques and divides the catch among families. Which system and which worksheet row?
Traditional; “How to produce” & “Who receives.”
Give one real-world example of a traditional economy.
Some Indigenous communities; rural subsistence farming/herding villages.
Name a country/time period commonly associated with command economies.
Former Soviet Union; North Korea; Mao-era China.
What is a benefit of the market economic system?
Competition pushes prices down and fosters innovation.
Why do most countries today use mixed economies?
To balance efficiency/innovation (markets) with equity/stability (government).
what system has the maximum consumer choices?
market economies
How do culture and history shape production choices in a traditional economy?
Cultural beliefs, rituals, and ancestral knowledge determine which goods are made and by whom.
While command economic planning can guarantee jobs/income/basic goods, what is a drawback of this economic system?
Limits on freedom and variety
Name one major downside of a pure market economy.
Inequality, under-provision of public goods, and market failures
Give a current example of U.S. government involvement in the economy.
Minimum wage laws, antitrust actions, student-loan policy, farm subsidies, public schools, Medicare/Medicaid.
what system guarantees the availability of basic goods?
command ecomony