Comprehension Check: Economic Systems
1. What are the three major economic questions?
2. Why does a company with limited resources need to answer the three major economic
questions? Explain using an example other than a car manufacturer.
3. In a three column chart, summarize how the command and market economies answer
each of the three economic questions.
4. What are the characteristics of a free enterprise system?
5. If Canadians were not allowed to own private property and did not have freedom of
choice, what impact would this have on business? How would life change?
6. In Canada’s market economy, people are free to run any type of business within the law.
What if there were no laws governing businesses? What might happen?
7. Even though businesses have many freedoms under our economic system, there are
many activities that they are not free to do. For example, businesses are not allowed to
provide an unsafe environment for workers. List five other activities that businesses are
not allowed to do.
8. Define a modern mixed economy.
9. Give an example that shows how the Canadian economic system is a modern mixed
economy.
10. What might it be desirable for a country to have elements of both a command and a
market economy?
11. In Canada’s market economy, people are free to choose their careers. What if someone
told you what job you had to do? How would you feel?
12. In Canada’s market economy, businesses get to keep their profits. What if the
government started taking most of the profits? How might business owners and
business change?