Economic Systems

Households (consumers) and firms (businesses) decide the three essential questions.

The central government alone decides how to answer the three essential questions.

The third economic question is "Who consumes these goods and services?"

The second economic question is "How should these goods and services be produced?"

Consumers, producers, and the government answer the three essential economic questions.

The four economic systems are...

Most economies are ____ in that both market and government answer the 3 economic questions.

The first economic question is "what goods and services should be produced?"

This economic system is the complete opposite of a free market economy.

_____ pay households/consumers for land, labor, and capital in a free market economy.

Socialism and Communism are ideas commonly associated with this economic system.

When two or more producers struggle to win the consumer’s dollar, it is called _____.

Socialism and communism are two political systems which use a _____ economy.

_____ supply firms/businesses with land, labor, and capital in a free market economy.

These are expectations or motivations that encourage a person to behave a certain way.

In a free market economy, ___ supply households/consumers with goods and services.

In _____ economies, past customs, or tradition, answer the three questions

The people in this economy produce most of its own goods and consume what it produces.

In this economy there is little room for innovation or change.

This economy relies on tradition and custom to answer the three essential questions.

In this economy, the gov't is a rule maker for businesses and a protector of consumer's rights.

In ___ economies, consumers & producers answer the three economic questions based on exchange.

Adam Smith wanted no government intervention in the market and he called this _________

An ___ ___ is the method used by a society to produce and distribute goods and services

This economy is also known as centrally planned.

In a _____________ economy, producers and consumers are motivated by their own _________

A _____ allows buyers and sellers to exchange goods and services.

_____ pay firms/businesses for goods and services in a free market economy

Farming, gathering, and hunting are at the center of this economic system.  

Adam Smith used the term _____ _____ for no government intervention in a free market economy.

The struggle between producers for the dollars of consumers in a free market is _____.

Societies answer the three basic questions based on what that society values.

The government and the market play roles in answering the three questions in a _____ economy.

In a ___ economy, the central government answers the three economic questions.

In a free market economy, ___ and ___ use markets to exchange money and products. 

In a free market, the buyer and seller consider only their own _____, or personal gain.