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Economic System Characteristics

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Characteristic
System
Customs govern the economic decisions that are made.   Traditional  
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Technology is not used.   Traditional  
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Farming, hunting and gathering are done the same way as the generation before.   Traditional  
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Economic activities are usually centered toward the family or ethnic unit.   Traditional  
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The government or other central authority makes decisions and determines how resources will be used   Command  
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Change can occur relatively easily.   Command  
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There is no economic freedom.   Command  
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There is no competition.   Command  
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Businesses are not run to create a profit.   Command  
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Consumers have few choices in the market place.   Command  
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Factories are concerned with quotas.   Command  
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Shortages are common because of poorly run factories.   Command  
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The government dictates the job in which you work.   Command  
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The government sets the prices of goods and services.   Command  
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Resources are owned and controlled by individuals.   Market  
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Economic decisions are made by individuals competing to earn profits.   Market  
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Economic freedom is considered very important.   Market  
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Economic decisions are made by the basic principles of supply and demand.   Market  
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Profit is the motive for increasing work rather than quotas.   Market  
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This system is also described as capitalism.   Market  
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There are many economic freedoms.   Market  
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There is competition among businesses.   Market  
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Competition determines price which increase the quality of the product.   Market  
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Government and individuals share the decision making process.   Mixed  
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Government guides and regulates production of goods and services offered.   Mixed  
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This system protects consumers and workers from unfair policies.   Mixed  
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This is considered the most effective economy for providing goods and services.   Mixed  
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Created by: smmhr5
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