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
#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