Question

name economics period: economic systems each society decides how to organize its economy and its scarce resources. it is simply not possible for everyone to have everything they want or need all the time, so choices must be made and opportunity costs considered. such choices are usually made according to the type of economic system that functions in the society. an economic system includes laws, people, institutions, activities, values, and decisions that influence economic decisions. the most basic economic decisions made are what goods and services will be produced or not produced and how resources will be used. there are three different ways these decisions can be made. in a command - economic system or economy, an authority (usually the government) makes these decisions. under a command system, the government either owns the factors of production and companies, or they have control over privately - owned businesses. a market economy exists when decisions are made by supply and demand. people in market economies are free to produce whatever they want, buy whatever they want, and work for whomever they want. private individuals own companies and are free to make decisions without government influence. prices act as signals to producers, telling them what people want to buy and how much they are willing to spend. the third type of economic system is a mixed economy, which as its name indicates, is a combination of command and market systems. in mixed systems the government has some control over some industries, while others are owned and controlled by private business. people who make goods and services, whether government leaders or private businesspeople, all consider three basic questions: what can i produce, how will i produce it, and for whom will i produce it. for example a local landowner may decide that he wants to use his own land to grow vegetables to sell to the local grocer. a government may decide that, using the same amount of land they will create a national park for tourists to visit. this means decisions made in similar ways can have very different outcomes. tell whether each situation would most likely occur in a command, market, or mixed economy and be prepared to explain your reasoning: acme auto company begins only making hybrid cars. all young men and women must work in a hospital for one year. a clearance sale is held to rid the store of last years clothing styles. one tackle shop charges $3 for fishing lures; another sells the same lures for $2 each. the highest salary a top executive can receive is $2 million a year. all computers are priced at or below $400 each. factories must spend at least ¼ of their time producing weapons, clothing, trucks, etc. for the military. students are tested to help discover their talents and attend schools to study for jobs based on their strengths. a playing card company decided to branch out into video games. factories must filter their water waste and exhaust so they do not pollute the environment.

Explanation:

1. Acme Auto Company making only hybrid cars is a market - economy decision as a private company is making a production choice based on market trends.
2. All young men and women being required to work in a hospital for a year is a command - economy situation as it is a government - imposed mandate.
3. A clearance sale to get rid of old clothing styles is a market - economy activity as it is a private business responding to market conditions.
4. Different prices for the same fishing lures at different tackle shops is a market - economy feature due to competition and supply - demand dynamics.
5. Setting a cap on a top executive's salary is more likely in a mixed - economy where the government may regulate aspects of private business.
6. Pricing all computers at or below a certain amount is likely a command - economy or mixed - economy action if it's a government - set price.
7. Factories being required to produce military goods is a command - economy element as it's a government - directed production requirement.
8. Students being tested and guided to jobs based on talents could be in a command - economy where the government organizes human resources.
9. A playing card company branching into video games is a market - economy decision by a private business.
10. Factories being required to filter waste to protect the environment is a mixed - economy situation where the government regulates private industry for public good.

Answer:

1. Market economy
2. Command economy
3. Market economy
4. Market economy
5. Mixed economy
6. Command or mixed economy
7. Command economy
8. Command economy
9. Market economy
10. Mixed economy