ANSWER KEY



ANSWER KEY

ECONOMY COMPARISON CHART

Directions:

Locate information about how each economic system answers the 3 basic economic questions:

| |TRADTIONAL |COMMAND |MARKET |

| |SYSTEM |SYSTEM |SYSTEM |

|WHAT TO PRODUCE? |By custom – whatever |The government decides what should be|Consumer choices dictate the |

| |was produced in the past |produced. |success of |

| | | |goods/services |

| | |The government owns most of the means| |

| | |of production. | |

|HOW TO PRODUCE? |By custom – however |The government does the planning for |Business leaders choose the means |

| |items were produced in the past |production: factory locations, the |of production |

| | |occupations of workers and their | |

| | |salaries |Their goal is the most |

| | | |efficient and profitable methods |

|FOR WHOM TO PRODUCE? |By custom – whoever |The government controls the |The consumers’ income determines |

| |usually received |distribution system for |who receives which goods/services |

| |products will again |goods/services: housing, | |

| |receive them |transportation, consumer | |

| | |items and sets prices | |

Economics: pertaining to an economy, or system of organization or operation, especially of the process of production.

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