Economics: Concepts and Choices

Holt Mcdougal

Chapter 2

Economic Systems - all with Video Answers

Educators

Section 1

Introduction to Economic Systems

Problem 1

Demonstrate your understanding of the following terms by using each one in a sentence.
a. traditional economy
b. command economy
c. market economy

Noor Almesad

Noor Almesad

Numerade Educator

Problem 2

Which is more important in a traditional economy, accumulating individual wealth or honoring tradition? Explain your answer.

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 3

How are economic decisions made in a command economy?

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 4

What drives the choices of consumers and producers in a market economy?

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 5

Does Adam Smith's "invisible hand" also function in traditional and command economies? Explain your answer.

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 6

Using Your Notes What do the three kinds of economic systems have in common? Refer to your completed cluster diagram.

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 7

Drawing Conclusions How might strongly defined economic roles and goals be both a strength and a weakness of traditional economies?

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 8

Analyzing Cause and Effect What effect might mass media have on the erosion of traditional economies in today's world?

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator

Problem 9

Generalizing from Economic Information You have the following information about an economy: 1 ) People have little choice in the kinds of jobs they do. 2) Producers are not free to use resources as they wish. 3) People have little, if any, say in how the basic economic questions are answered. What kind of economy might this be? Explain your answer.

Jennifer Stoner

Jennifer Stoner

Numerade Educator

Problem 10

Challenge Most modern economies are a mixture of the three economic systems described in Section 1. Identify elements of traditional, command, and market economic systems in the American economy. (You will learn more about mixed economies in Section $4 .)$

Kaylee Mcclellan

Kaylee Mcclellan

Numerade Educator