3.1.2.2 Different economic systems

• Market economies are driven by supply and demand with minimal government intervention.

  True
• Match the characteristic with its explanation in a Free Market Economy:

  Private Ownership ↔️ Individuals and businesses own property

  Price Mechanism ↔️ Prices determine resource allocation

  Competition ↔️ Firms compete for customers

  Limited Government Intervention ↔️ Government enforces contracts and protects property
• In a command economy, there is a lack of competition
• In a free market economy, resources are owned by individuals and businesses.

  True
• What drives decisions in a Free Market Economy?

  Supply and demand
• Who makes economic decisions in a Command Economy?

  The government
• What are the key features of a Free Market Economy?

  Private ownership and competition
• Match each country with its economic system:

  United States ↔️ Free Market

  North Korea ↔️ Command Economy

  United Kingdom ↔️ Mixed Economy
• What is an economic system used for?

  Organize production and consumption
• In a command economy, who makes all economic decisions?

  Government
• What is a Command Economy characterized by?

  Government control of decisions
• Why do consumers have limited choice in a command economy?

  Government determines resource allocation
• An economic system is the method a country uses to organize the production, distribution, and consumption of goods and services
• In a Free Market Economy, individuals and businesses own property and make economic decisions based on self-interest
• In a Command Economy, the government owns the means of production
• A Mixed Economy combines features of both Free Market and Command Economies, allowing for private ownership alongside significant government intervention
• Traditional economies rely on customs, traditions, and historical practices
• Mixed economies combine elements of both market and command systems
• In a command economy, the government plans and directs all economic activity.


  True
• In a command economy, prices are set by government authorities
• Match each economic system with its main characteristic:

  Traditional Economy ↔️ Relies on customs and traditions

  Market Economy ↔️ Driven by supply and demand

  Command Economy ↔️ Government controls production

  Mixed Economy ↔️ Combines market and command elements
• Competition in a Free Market Economy leads to innovation and lower prices


  True
• Competition is a key characteristic of a Command Economy

  False
• The United Kingdom is an example of a Mixed Economy


  True