The decision-making process involves interaction among many aspects of a nation's culture, such as its laws, form of government, ethics, religions, and customs. Each economic system can be classified into one of three basic types: (1) traditional, (2) command, or (3) market. 1. Study Questions and Problems #1 A central planning agency called the Gosplan set production quotas and prices for the entire economy. For example, the Gosplan decided what wages a dairy farmer should earn, how much land can be used to grow hay, and what the cows should be fed. What type of economy best corresponds to this culture? The market economy The command economy O The traditional economy Capitalism Socialism Communism O O In the following table, indicate which economic system best matches each description. Description An economic system characterized by private ownership of resources and market-based delivery of goods and services An economic system characterized by government ownership of resources and centralized decision making A stateless, classless economic system in which all the factors of production are owned by the workers, and people share in production according to their needs O O O O о

The decision-making process involves interaction among many aspects of a nation's culture, such as its laws, form of government, ethics, religions, and customs. Each economic system can be classified into one of three basic types: (1) traditional, (2) command, or (3) market. 1. Study Questions and Problems #1 A central planning agency called the Gosplan set production quotas and prices for the entire economy. For example, the Gosplan decided what wages a dairy farmer should earn, how much land can be used to grow hay, and what the cows should be fed. What type of economy best corresponds to this culture? The market economy The command economy O The traditional economy Capitalism Socialism Communism O O In the following table, indicate which economic system best matches each description. Description An economic system characterized by private ownership of resources and market-based delivery of goods and services An economic system characterized by government ownership of resources and centralized decision making A stateless, classless economic system in which all the factors of production are owned by the workers, and people share in production according to their needs O O O O о

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter1: The Economic Approach

Section: Chapter Questions

Problem 11CQ

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