Economic Systems

Review

Take out a piece of paper

Turn it landscape (sideways)

And divide it into four sections

Title the sections

• Traditional economic system

• Pure Command

• Pure Market

• Mixed

Put each of the numbers in the

correct section

#1

TraditionalPure

Command

#3

Pure Market

#7

Mixed

#9

Here

We

Go

#1

• Use habit, ritual or custom to answer the basic

economic questions

#2

• The government makes all the economic

decisions

#3

• All countries today have this kind of economic

system

#4

• This type of economic system can also be called

centrally planed

#5

• The buying and selling of goods is used to

answer the basic economic questions

#6

• A disadvantage of this system is that there is no

incentive for workers

#7

• This economic system has complete consumer

sovereignty meaning consumers decide what will

be produced because the producer will only

produce the products consumer will purchase.

#8

• This type of economic system has the lowest

standard of living.

#9

• Adam Smith wrote about this type of economic

system. He discussed the invisible hand theory.

#10

• This type of economic system can change the

quickest.

#11

• This economic system is the most resistant to

change.

Answers

• Traditional

• 1

• 8

• 11

• Pure Command

• 2

• 4

• 6

• 10

• Pure Market

• 5

• 7

• 9

• Mixed

• 3