Educational worksheet comparing economic systems with fill-in-the-blank questions and a word bank.

1. Economics is the study of how individuals, businesses, and societies allocate scarce resources to satisfy unlimited wants.

2. The three questions all economic systems answer are:
- What to produce?
- How to produce?
- For whom to produce?

3. A traditional economy is characterized by the customs of goods in which two or more generations trade with each other.

4. Traditional economies do not use money as a medium for trade.

5. Money allows individuals and producers to connect with each other more easily.

6. Supply and demand are driven by consumer preferences and market forces, making market economies possible.

7. Another word used to describe market economies is capitalism.

8. In a command economy, decisions are made by the government with little input from individuals; the government owns most of the resources and makes all major economic decisions.

9. Mixed economy is the term used to describe a hands-off approach by the government towards the economy. It is also the same term referred to as the “invisible hand of the market.”