Question

word bank: describe the economic system for each scenario. 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

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

Explanation:

1. A teenager starting a lawn - mowing business and setting prices based on customer willingness is a free - market activity as it's driven by individual initiative and market forces.
2. Indigenous tribes gathering medicinal plants using traditional methods is a traditional economic activity.
3. In Canada, people can shop at privately owned stores and also have government - provided services, which is a mixed economic system.
4. During World War II, the Soviet Union directing factories for military production is a command economy feature.
5. In Cuba, the government owning most businesses and deciding jobs and pay is a command economy aspect.
6. In Germany, private businesses operating freely with government - provided public services is a mixed economy.
7. Nomadic herders in Mongolia moving livestock based on traditional seasonal patterns is a traditional economic activity.
8. A company developing a video game and deciding production quantity based on sales expectations is a free - market activity.

For the True - False questions:

1. Economics is about dealing with limited resources, so false.
2. In traditional economies, production is often based on tradition, not government regulations, so false.
3. Free enterprise allows businesses to make production and pricing decisions based on consumer demand, so true.
4. Command economies have government - directed production and distribution, often with state - ownership, so true.
5. Most countries have a mix of free - market and government - intervention elements, so false.

Answer:

1. False
2. False
3. True
4. True
5. False
6. True
7. True
8. True

True - False questions:

1. False
2. False
3. True
4. True
5. False