Question

describe the economic system for each scenario. word bank: command free market mixed traditional

1. a teenager starts a lawn mowing business and sets their own prices based on what customers are willing to pay.
2. indigenous tribes in the amazon rainforest gather medicinal plants and trade them within their community using traditional methods.
3. in canada, people can shop at privately owned stores, but healthcare is provided by the government.
4. during world war ii, the soviet union directed all factories to produce military equipment and supplies instead of consumer goods.
5. in cuba, the government owns most businesses and decides what jobs people will have and how much they will be paid.
6. in germany, private businesses operate freely, but the government provides public education and transportation systems.
7. nomadic herders in mongolia move their livestock according to seasonal patterns, just as their families have done for generations.
8. a company develops a new video game and chooses how many copies to produce based on what they think will sell.

true or false
true or false: economics is concerned with how societies deal with unlimited resources.
true or false: in traditional economies, production is determined by government regulations.
true or false: free enterprise systems allow businesses to make their own decisions about production and pricing based on consumer demand.
true or false: command economies are characterized by private ownership of production and operation based on free market principles without any government involvement.
true or false: most countries today operate solely on free market principles without any government involvement.

Explanation:

1. The teenager setting prices based on customer - willingness is a free - market characteristic as decisions are made by individuals in the market.
2. Indigenous tribes using traditional methods is a traditional economic system.
3. Private stores with government - provided healthcare is a mixed economic system with both private and public elements.
4. Soviet Union directing factories during WWII is a command economic system as the government controls production.
5. Cuba with government - owned businesses and job/income decisions is a command economic system.
6. Germany with private businesses and government - provided public services is a mixed economic system.
7. Nomadic herders following generational patterns is a traditional economic system.
8. A company making production decisions based on sales expectations is a free - market system.

For true - or - false:

• Economics deals with limited resources, so "Economics is concerned with how societies deal with unlimited resources" is False.
• In traditional economies, production is based on custom and tradition, not government regulations, so it's False.
• Free enterprise systems allow business decision - making based on consumer demand, so it's True.
• Command economies have government control, not private ownership of production, so it's False.
• Most countries have some government involvement, not solely free - market principles, so it's False.

Answer:

1. Free Market
2. Traditional
3. Mixed
4. Command
5. Command
6. Mixed
7. Traditional
8. Free Market

True or False:
False
False
True
False
False