Name: Paul Zuo
2.01 Key Terms Blank
Understand Economics and Economic systems
Economics Terms Economics Terms
Economics studies how individuals and societies seek to satisfy
needs and wants through incentives, choices, and
allocation of scarce resources
Scarcity shortage of resources
Capital Resources used to produce goods and services, buildings, materials,
Natural Resources raw materials found in nature that are used to produce
goods, Lumber, Oil
Human Resources people’s knowledge, efforts, and skills used in their work,
Education, Training, Skills
Entrepreneurial recognize the need for new goods or service, Kindle, IPod,
IPhone, Pre Phone
Types of Economies Types of Economies
Command economy The government determines what, how, and for whom
goods and services are produced.
Market economy Free Market Economy, United States is Close
Socialist economy produce for use rather than profit
Mixed Economy Combination of a market and a command economy
people have specific roles; security in the way things are
done. assigned stuff
Characteristics Traditional Market Command Mixe
Who makes the dont change people government mixed
What is the none nothing controlling taking
in the economy?
What motivates tradition profit motive giving the people needs profit
the economy? and wants
How are everyone does a specific resources are sold,brought, controls everything and the pe
resources job and controlled by people uses everything. resour
Is the level of low highest none High
or low in the
List examples of central african countries none Cuba, North Korea China
countries with this Englan
type of economy.
List characteristics for each type of economic system by answering questions in
the left column for each type of economic system.
2.01 Comparing Economic Systems
Name: Paul Zuo :P
• Guarantees equal standard of living for everyone
• Less crime and poverty
• Needs are provided for through the government
• Minimal choices, Fewer choices of items
• No incentive to produce better products
• Advantage:competition to have the best products and services
• Disadvantage:huge rift between wealthy and poor
• Advantage:balance of needs and wants met by government and in
• Disadvantage:citizens have to pay taxes
• Advantage:people have specific roles; security in the way things are done
• Disadvantage:Technology is not used; difficult to improve
2.01 Comparing Economic Systems Name: Page 2
1. Name some similarities between Command and Traditional economic systems.
trational economy is an economy system in which resources are allocated by inheritances...and
command economy is runed in a different way
2. Name some similarities between Command and Mixed economic systems.
Men and women are given different economic roles and tasks
3. Name some similarities between Market and Traditional economic systems.
They both have some weak spots in traditionallsness yessss ilyy
4. Name some similarities between Market and Command economic systems.
some similarities are that they both have producers and consumers, goods and services, and also
money and labor.
5. Name some similarities between Market and Mixed economic systems.
Market and mixed exconomies both let businesses and people satisfy wants while the government solves needs
in a mixed economy. In a pure economy the businesses take care of needs as well.
6. In addition to all these being Global Economic Systems, name one major similarity in
In all systems somebody has to take care of the wants and needs of the people.