Business Administration & Management
Economic Systems problems
February 2017
Do Now questions:
1.
2.
3.
4.
Identify an Economic-Political system.
Name a country currently using this system.
How did this system come to be their system?
Do you believe it is working for them?
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Activity:
1. What is the name of the economic system that best represents each
statement?
a) Resources are allocated by government only
b) Marketing decisions are made by market conditions
c) China is a good example of this economic system
d) Businesses and individuals own natural resources and capital goods
e) Government controls business decisions extensively for the allocation of
some resources, but little over distribution
(continue on next page)
2. For each economic-political system listed, check the column that best fits
its characteristics.
Capitalism Socialism Communism
a) Freedom to own land and other
property
b) Usually a shortage of consumer goods
c) Some industries owned by government
but often allows some private ownership
d) Nearly any individual may start a business
e) Government decides how
and what goods are to be produced
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Closure:
1. What special feature of the free enterprise system helps keep the price of
goods and services down?
2. How might a business attract customers from other sellers?
3. List two examples of non-price competition.