Worksheet on economic systems featuring questions about planned, free market, and mixed economies.

Let me work through each question step by step.

Multiple Choice Questions:

Question 1: Joan lives in a country where the government assumes control of economic planning and resources allocation.
- When the government controls economic planning and resource allocation, this is called a planned economy (also known as command economy)
- Answer: a) planned economic system

Question 2: Another term used to describe a free market economic system
- Free market systems are also called capitalist systems
- Socialist = government ownership
- Subsistence = basic survival economy
- Command = government controlled
- Answer: a) capitalist

Question 3: "People's desire expressed through market forces, determine the area into which resources are to be channeled"
- This describes how consumer demand drives production decisions
- In communist/planned systems, the government decides
- In mixed systems, both government and market play roles
- In free enterprise (free market), consumers' choices drive resource allocation
- Answer: B. Free enterprise system

Question 4: Which type of economic system is commonly found in the Caribbean?
- Most Caribbean countries have mixed economies with both private and public sectors
- They're not purely traditional, planned, or completely free market
- Answer: D. Mixed economy

Question 5: What is the name given to an economic system based on customs of heritage?
- Traditional economies are based on customs, traditions, and heritage passed down through generations
- Agricultural refers to farming-based, not necessarily traditional
- Modern is contemporary
- Command is government-controlled
- Answer: D. Traditional

Question 6: An economy which factors of production are owned and controlled by the private sector as well as the public sector is called...
- The question seems incomplete but asks about what we can conclude from different economic systems existing
- Looking at the options, they seem to be asking what the existence of different systems tells us
- Option A states that different systems can solve the same problems - this is true
- Answer: A. Different systems can be used to solve the same economic problems

True/False Questions:

Statement 1: Even though consumers are sovereign, it is the profit motive that governs the free market.
- TRUE - While consumers have power (consumer sovereignty), businesses operate primarily for profit, which drives their decisions in a free market

Statement 2: In a planned economic system, producers are likely to switch production from pens to pencils if they think they can get more money from selling pens.
- FALSE - In a planned economy, producers don't make these decisions based on profit; the government/planning authority makes production decisions

Statement 3: In a planned economy, prices are controlled by the state.
- TRUE - In planned/command economies, the government sets prices rather than letting supply and demand determine them

Statement 4: Prices are controlled by the state in a capitalist economy.
- FALSE - In capitalist/free market economies, prices are determined by supply and demand, not controlled by the state

Final Answer:

Multiple Choice:
1. a) planned economic system
2. a) capitalist
3. B. Free enterprise system
4. D. Mixed economy
5. D. Traditional
6. A. Different systems can be used to solve the same economic problems

True/False:
1. True
2. False
3. True
4. False