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.
the potential to profit from one’s labor |
|
conflict between laborers and landowners (capitalists) |
|
private ownership and control of the factors of production without government control |
|
encouragement of competition |
|
same income for all laborers |
|
ownership of the factors of production by the government |
4) Select the best answer.
Which type of economic system would more closely subscribe to the doctrine of laissez faire?
state ownership |
|
communism |
|
free enterprise (capitalism) |
|
socialism |
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