| A | B |
|---|
| economic system | the way in which a country makes economic decisions |
| element of ALL economic systems | participants |
| resources | what is used to produce goods and services |
| money | the most common medium of exchange |
| to balance supply and demand | why countries need economic systems |
| fewest improvements with no growth or progress | the traditional systme has this because of a lack of change |
| command economy | some to a lot of government control of production and little or less private ownership |
| market economy | individuals and businesses own the means of production with little government involvment |
| Asia | Example of a where a traditional eocnomy can be found |
| China, Cuba, North Korea | Examples of communist command countries |
| Government | The way a country answeres its 3 basic economic questions is largelty dependent on the type of this |
| What to produce | decided by what consumers want and need |
| US, Japan | these countries have a market systme |
| Great Britain, Canada | THese countries have a socialis economy |
| What has always been made | How what to produce is answered in a traditional economy |
| by individuals | how products are allocated in a traditional systems |
| The Governement decides all | How decisons are made in communists command |
| below governement expectations | what productivity is in a communist command |
| Government has a master plan | What products in a socialist economy is based on |
| economic votes | how consumers determine what is made in market economy |
| No competition | What a major problem with communist command countries are |
| High Taxes | the major problem with socialist economies |
| Financial loss, poverty | problems in market economies |
