Handout #
Name _____________________________
Hour _______
Types of Economies
Directions: Use Chapter 2, Section 1 to fill in the following boxes.
• Describe:
Traditional
Economy
• Advantages:
• Disadvantages:
Command
Economy
• Describe:
Market
Economy
• Describe
Answer the following questions based on your understanding of the three different
economies and our previous discussion of the three economic questions. (Refer to
your notes if you don’t remember the three economic questions.)
1.
How does a traditional economy answer the three economic questions?
a. What is produced?
b. How is it produced?
c. For who is it produced?
2. How does a command economy answer the three economic questions?
a. What is produced?
b. How is it produced?
c. For who is it produced?
3. How does a market economy answer the three economic questions?
a. What is produced?
b. How is it produced?
c. For who is it produced?