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Economic Systems Bookwork period

Read pages 717-721 in your textbook and answer the questions below in ink. You may type your answers if you wish, but please either type the questions with them or staple your answers to this paper.

1. What are the three questions that all economic systems must answer?

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2. Define the following terms. If you do not understand the definition, be sure to read the context in which the term is used.

a. scarcity –

b. traditional economy –

c. command economy –

d. market economy –

3. What are factors of production? (Definition, not list)

4. List the four categories of factors of production, and provide examples.

Factors of Production

Examples for each category

5. Define the following terms. If you do not understand the definition, don’t worry – you will read more about each one in a minute.

a. Communism –

b. Socialism –

c. Capitalism –

6. What are the five main characteristics of capitalist economies?

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7. a. What is a monopoly?

b. What is an oligopoly?

c. What is a profit?

8. How has the role played by the U.S. government in the nation’s economy changed since the late 1800s?

9. How does the free market system promote freedom of choice for consumers in the United States? (Note: you won’t find this answer in the textbook; you’re going to actually have to think about it.)

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