<p>Chapter 3 - Economic Systems Totaro Name: ______</p><p>Today's Objectives -</p><p>FUNDAMENTAL QUESTIONS OF ECONOMIC SYSTEMS</p><p>What are the 5 Fundamental Questions of Economic Systems and why is each so important?</p><p>1. </p><p>2. </p><p>3. </p><p>4. </p><p>5. </p><p>What are the 6 Economic Goals a system is trying to achieve?</p><p>1. </p><p>2. </p><p>3. </p><p>4. </p><p>5. </p><p>6. Why is it impossible to be able to accomplish all 6 goals with a single economy?</p><p>What is an economic system?</p><p>What are 3 examples of economic systems? 1. </p><p>2. </p><p>3. </p><p>Answer the questions asked on the board in the space provided below...</p><p>1. Where 3. Advantages/Disadvantages</p><p>2. Who or what 4. Preference? ECONOMIC SYSTEMS</p><p>What is a Traditional Economy?</p><p>What is a Command Economy and who controls its production? List an example of a country with this.</p><p>What are the failures of a command economy?</p><p>What is a Free Market Economy and who controls production? List an example of a country with this.</p><p>How would you describe much of the world's economic system? Can you break it down by continent or area?</p><p>ADAM SMITH AND HIS INVISIBLE HAND</p><p>Who came up with the idea of the "invisible hand?"</p><p>Explain, in your own words, how the "invisible hand" works. INCENTIVES AND THE FREE MARKET </p><p>How do incentives help to promote hard work and ideas in a free market economy?</p><p>Are there any failures to a free market economy? Think about this!!</p><p>What is private property and what are some examples of private property?</p>