9/What is a traditional economy?

Traditional economy: an economic system that allocates scarce resources according to custom; change and growth are very slow; people do what their parents did before them; most goods are produced and consumed locally.The traditional economy is an economic system in which decisions about what, how, and for whom questions are made on the basis of customs, beliefs, religion, habit, and tradition.

10/ How are the answers to What, How and Who questions decided in a society with a traditional economy? The traditional economy is an economic system in which decisions about what, how, and for whom questions are made on the basis of customs, beliefs, religion, habit, and tradition.

11/ Why are there few social changes within a traditional economy?

12/What is a command economy?

Command economy: an economic system in which major decisions concerning the resources allocation are made by agencies of the government.

13/ Who makes decisions on the fundamental economic questions in a society with a command economy?

The command economy is a society where the government institutions make all decisions concerning what will be produced, how it will be produced, and for whom it will be produced.In a command economy, a central authority or agency draws up plans that establish what will be produced and when, sets production goals, and makes rules for distribution.

14Who owns the major means of production in a command economy? The government owns a considerable portion of the means of production, thus they are publicly owned; it also owns and directs the operations of enterprises in most industries; it is the employer of most workers and tells them how to perform their work.

15/Why do the individuals have very little say as to how the basic economic questions are answered?

A hard working citizen has no chance to benefit from his extra work because he cannot increase his standard of living any greater than it currently is and he will earn just as much as a person who makes little or no effort.

16/What is a market economy?

Market economy: an economic system in which national economic decisions are the result of decisions of individual buyers and sellers in the market place.

17/How is sometimes a market economy called? The market economy (or free enterprise economy) is an economic system in which the decisions of many individual buyers and sellers interact to determine the answers to the questions of What, How and Who. In a market economy the fundamental economic questions are answered in the marketplace by the interaction of buyers and sellers. The question of what to produce may be based on what trend is popular right now. The question of how to produce is usually based on the producer's choice. The question involving for whom to produce is based on the consumers who decide what they want or need and what price they are willing to pay for it.

18/What is a free enterprise system? The market economy (or free enterprise economy) is an economic system in which the decisions of many individual buyers and sellers interact to determine the answers to the questions of What, How and Who.