Laurel Springs High School Characteristics of Economic Systems Answers

Answer the following questions.

1) Match the characteristics with the economic systems. Answers may be used more than once.

possible answers: free enterprise (capitalism), socialism, laissez faire, communism or socialism, communism, mercantilism

grew out of socialism
was a reaction to capitalism
emphasizes competition
private ownership

seeks an economy under the collective social control of the working class

controls not only all factors of production, but all areas within society

rewards personal initiative

classless society

pursuit of profit
governments sought to gain power by accumulating more wealth than other nations
advocated by Adam Smith, the “father of modern economics” and author of The Wealth of Nations; doctrine of economic opportunity with little to no government intervention
system most associated with Karl Marx, co-author of The Communist Manifesto with Friedrich Engels
North Korea
doctrine that people can be more prosperous without government intervention

Sweden

2) Check all that apply.

system of their state?

3) Check all that apply.

Select THREE characteristics that differentiate free enterprise (capitalism) from socialism

and communism.

4) Select the best answer.

Which type of economic system would more closely subscribe to the doctrine of laissez faire?

5) Match the factors of production with their role in the production and distribution of goods and services.

possible answers: natural resources used in the manufacturing products, tools and equipment needed to accomplish work, the ability to do work, education and skill nessacesary to create products or provide services.

land (natural resources)
entrepreneurship
labor
capital goods