Name ________________________________

 

Economic Systems (pp. 572-575)

 

  1. What are the three basic economic questions that all economies must answer (572)?

 

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  1. How are economic decisions made in a market economy (572)?

 

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            What is another name for this system (572)?

 

  1. Who owns the factors of production (all four types of resources) in a market economy (572)?

 

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  1. In a market economy, business owners are motivated by profit.  What is profit?

 

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  1. In a market economy, what determines prices (573)?

 

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  1. There are no pure market economies in the world. In what situations does the government play a role in the United States’ economy (573)?

 

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  1. Using the map on page 573, name three countries other than the United States that have a per capita GDP of $20,000 or more.

 

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  1. What is the world average per capita GDP (map on 573)?

 

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  1. Who makes the major economic decision in a command economy (574)?

 

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  1. What is socialism (574)?

 

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  1. Briefly describe the ideas of Karl Marx (574).

 

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  1. What is communism (574)?

 

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  1. Cuba and North Korea are two current examples of command economies.  What are their per capita GDPs (map on 573)?

 

            --Cuba:

            --North Korea:

 

  1. Command economies are often very inefficient.  What problems arise because of this inefficiency (575)?

 

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  1. Name two countries that are currently in transition from a command economy toward a market system (575).

 

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  1. What is a mixed economy (575)?

 

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  1. List the per capita GDP for North and South Korea (map on 573).

 

            --North Korea:

            --South Korea:

 

            Why do you think that there is such a large difference in the per capita GDP of North and South         Korea?

           

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