Understanding Economic Systems
This worksheet helps 8th-grade students understand different economic systems, including traditional, command, market, and mixed economies, and their key characteristics.
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Understanding Economic Systems
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Read each question carefully and answer to the best of your ability. This worksheet covers traditional, command, market, and mixed economic systems.
1. In which economic system are the decisions about production and distribution made by customs and traditions?
Command economy
Market economy
Traditional economy
Mixed economy
2. Which characteristic best describes a market economy?
Government controls all resources
Economic decisions based on supply and demand
Production methods passed down through generations
Equal distribution of wealth among all citizens
3. In a economy, the government makes all economic decisions.
4. Most countries today operate under a economy, combining elements of both market and command systems.
5. A traditional economy often relies on and simple bartering.
6. In a command economy, individuals have a high degree of economic freedom.
True
False
7. Competition is a key feature of a market economy.
True
False
8. Briefly explain the main difference between a pure market economy and a pure command economy.
Match each economic system with its primary characteristic.
9. Traditional Economy
a. Government makes all decisions
10. Command Economy
b. Decisions based on customs and beliefs
11. Market Economy
c. Decisions made by supply and demand