Unit 1 TGA: Economic Comparison Sheet

Incomplete answers will less or no credit.

Name: Lara Serrano
1.

What is a Free Market Economy? Give an example of how goods and services
are distributed. (5 points)

It is an economy that is going to have very little government involvement.

While the government is not involved in making economic decisions,
capitalistic governments put lars in place to protect the rights of
producers and consumers.

2. What is a Command Economy? Give an example of two countries that

has/had this type of economic system? (5 points)
The people who is in control of this economy is the government. The
government/ government planners control all aspects of the economy. Two
countries would be North Korea & Cuba.

3. What is a Mixed Economy? Why is the US considered mixed? (5 points)

This economy incorporates both free market principles and command
economic principles. It has some government involvement through
mandatory laws and regulations that business follow. The government
provided social programs for those who need help. The US is considered a
mixed economy because the government gets involved. There are Labor
laws, Minimum Wage Laws, Social Programs, and School Systems.

Critical Thinking (2 parts) 15 points

Read about North Koreas economy at:
http://www.heritage.org/index/country/northkorea
http://www.usnews.com/news/blogs/rick-newman/2013/04/12/heres-how-lousy-lifeis-in-north-korea
a.

How does a Command or Planned Economy affect the citizens of a country

that maintains this type of economy? Use three or four examples from both
the articles about North Korea in your response.

North Korean dictator Kim Jong Un might talk tough, but he presides over
one of the weakest, most dilapidated economies in the world. Life in

Unit 1 TGA: Economic Comparison Sheet

Incomplete answers will less or no credit.
North Korea is terrible because the citizens hardly receive the goods that
they need.
The annual GDP per capita is about $1,800, which ranks 197 th in the world
according to the CIA World Factbook.
About half of North Koreas population of 24 million lives in extreme
poverty. Children are stunted, due to malnutrition.
b.

With the information you have found, which type of Economic System do you
think would work the best: Free Market, Command or Mixed? Please support
your answers and use your own words. Make me believe your opinion.

I think the best type of Economic System would be mixed economy

because freedom and efficiency are two of the most important
qualities. Freedom oriented societies like the United States both carry
free market and command opportunities. I think that this is the best
way because people are given choices that make them elaborate and to
thoroughly think when making decisions.