1. Complete the following chart by filling in the blank spaces.
Economic Systems / What to Produce? / How is it Produced? / Who Gets it?Traditional / Set by tradition and custom. / Set tradition and custom.
Free Enterprise / Interaction of producers/consumers. / Producers decide how to produce.
Communist / Determined by government planners.
Socialist
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2. Use the information in the boxes and your knowledge of social studies to answer the following question.
The opportunity to make a profit drives people to put their money at risk. / Producers determine the supply, or availability, of a product / Consumers determine the demand for a productThe features described in these boxes best describes the workings of a?
a. Traditional Economy c. Socialist Economy
b. Free Enterprise Economy d. Communist Economy
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Use the article and your knowledge of social studies to answer the following question.
The Minister of Economics has created a plan for the economy which emphasizes the production of iron, steel, and hydroelectric power. In manufacturing, such good as tanks and tractors will receive high priority. Consumer goods are regarded as less essential. The people are expected to sacrifice comfort in order to raise the level of industrialization of their country.3. Based on the information in the article, the Minister of Economics most likely lives in a country that has a?
a. Traditional Economy c. Socialist Economy
b. Free Enterprise Economy d. Communist Economy
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4. In a socialist economic system, the government—
a. Has little say in what goods are made
b. Does not influence the distribution of goods and services
c. Guarantees all consumers a high income
d. Often owns a major businesses
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5. Which heading best completes the partial outline below?
I. ______A. Interaction of Supply and Demand
B. Profit Incentive
C. Entrepreneurs
a. Types of Economic Systems
b. Characteristics of a Free Enterprise Economy
c. Structure of a Socialist Economic System
d. Cottage Industries
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6. An essential characteristic of a communist economy is the—
a. Interaction of supply and demand
b. Organizations of worker unions
c. Privatization of business
d. Government ownership of property
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7. Which characteristic is typical of a less developed country?
a. Government does not interfere in the economy
b. Entrepreneurs play a key role in the nation’s economy
c. There is a high infant mortality rate and a short life expectancy
d. There is a high literacy rate and a long life expectancy
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8. Which statement would be true for a country with a large number of people engaged in quaternary economic activities?
a. Most people are engaged in subsistence agriculture
b. It has a high level of infant mortality
c. It has a low level of literacy
d. Many occupation involve information processing and management
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9. A newly industrialized nation is usually characterized by having—
a. A large number of worker engaged in manufacturing
b. Most people engaged in subsistence agriculture
c. A lack of human resourced like skilled and unskilled labor
d. Most of its workers engaged in quaternary economic activities
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10. Which statement would be true for a country with a large number of people engaged in quaternary economic activities?
a. Most people are engaged in subsistence agriculture
b. It has a high level of infant mortality
c. It has a low level of literacy
d. Many occupation involve information processing and management
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11. Which statement provides an important reason why countries and regions specialize in their economic activities?
a. They become more self-sufficient
b. They do not wish to compete
c. They have different productive resources
d. They are unable to overcome trade barriers
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12. What goal led to the formation of both the North American Free Trade Agreement (NAFTA) and the European Union (EU)?
a. To keep communism out of Western Europe
b. To reduce environment pollution
c. To increase economic cooperation between member nations
d. To eliminate global climate change
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13.
Country A has large deposits of iron and the technology to make cars and trucks. However, it lacks grazing land to raise livestock to create butter. Country B is covered in rolling fields and has a large supply of cows. Its farmers are efficient at making large amounts of butter, but they not produce trucks to carry this butter to cities and ports.a. Country A will begin to make its own butter
b. Country A and B will trade products with each other
c. Country B will start to manufacture its own trucks
d. Country B will sell trucks to Country A
MATCHING
____ 10. What is the basic problem of economics?
____11. Supply and Demand determines what in a Free Enterprise Economy?
____12. What are the main features of Communism?
Prices
Scarcity
Role of Government, Private Property, Cooperation, Major Goal
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WRITTEN RESPONSE
1. Think of a good or service you bought recently. Explain how the interaction of supply and demand most likely determined how much you paid for that product.
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2. Why do you think there is often a connection between the types of economic activities in a country and its level of economic development?
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3. How does global trade differ today from trade carried on 200 years ago?
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