System Characteristics
What type of economy allows individuals to own businesses and make their own economic decisions?
Capitalism
What is an advantage of capitalism for individual entrepreneurs?
Ability to make profit and own property.
What is a disadvantage of capitalism in terms of wealth distribution?
Can lead to significant income inequality.
Name a country that historically practiced communism.
Soviet Union/China/Cuba
In which economic system do private individuals or businesses control the majority of resources?
Capitalism
In which economic system does the government control all aspects of production and distribution?
Command Economy/Communism
What is an advantage of socialism in providing public services like healthcare?
More equal access to basic needs for all citizens.
What is a disadvantage of communism in terms of innovation?
Lack of personal incentives to innovate or improve production.
Which country is often considered the best example of a capitalist economy?
United States
Which system advocates for public ownership of the means of production?
Socialism
What economic system combines elements of private and public ownership?
Mixed Economy
What advantage does a command economy have in times of national emergency?
The government can quickly direct resources where needed.
What is a disadvantage of socialism when it comes to taxation?
High taxes are often required to support public programs.
Name a country that has a mixed economy.
United Kingdom/France/Germany
In which system does the government control all major aspects of the economy?
Command Economy
Which system relies on traditions and customs to make economic decisions?
Traditional Economy
What is an advantage of a traditional economy in isolated communities?
Economic stability and preservation of culture.
What is a disadvantage of a command economy in terms of consumer choice?
Limited variety of goods and services available.
What traditional economy still exists in isolated parts of the world today?
Indigenous tribes in the Amazon or Inuit communities in the Arctic.
What system relies heavily on traditional methods, such as bartering, to meet economic needs?
Traditional Economy
What is the term for an economy where goods and services are exchanged based on supply and demand with minimal government intervention?
Market Economy
What is an advantage of a mixed economy over a purely market economy?
It provides both economic freedom and government regulation to prevent inequalities.
What is a disadvantage of a traditional economy in terms of adapting to change?
It is often slow to adapt to technological advancements and modern economies.
Name a country that currently uses a command economy.
North Korea
Which system is characterized by free-market principles but with some level of government intervention?
Mixed Economy