Page 47

Question 1

What are the most common ECONOMIC SYSTEMS?

Answer 1

Market
Centrally planned
Mixed

Question 2

Give another name for MARKET ECONOMY

Answer 2

Capitalism

Question 3

Give another name for CENTRALLY PLANNED ECONOMY

Answer 3

Socialism & Communism

Question 4

In a MARKET ECONOMY, factors of production are owned by ………

Answer 4

private owners

Question 5

Economic CHARACTERISTICS of a MARKET ECONOMY.

..(a)… ownership acts on its own initiative and nobody prescribes what must be done. Everyone is …(b).. to choose their ..(c).. and consumption.
The profit motive controls the ..(d)..and consideration of ..(e)..
The price mechanism… (f).. coordinates economic activities.
There is no …(g)… plan according to which the economy has to develop.
All the activities are …(h)..
The market system is subject to business fluctuations, like …(i)… and …(j)…
…(k).. is important in a market system

Answer 5

a) private
b) free
c) production
d) decisions
e) entrepreneurs
f) demand and supply
g) central
h) decentralised
i) booms (economic growth)
j) recessions (economic decline)
k) competition