Every economic system must answer three basic questions. Two of them are what to produce and how to produce it. What is the third question?

Why must every society, no matter its economic system, choose what to produce?

In a command economy, who decides what factories will produce and what prices will be charged?

In a market economy, what mainly decides how much of a good gets produced?

What mainly decides how goods are produced in a traditional economy?

An economy has privately owned businesses that set most prices, while the government also runs some services and regulates industry. What kind of economy is this?

Free enterprise describes a system in which farms, factories, and shops are owned by whom?

A village fishes with the same methods its ancestors used, trades fish for grain without money, and gives each family the job its parents held. Which economic system is this?

A national planning office decides how many tractors each factory must build over the next five years and fixes the price of every tractor. Which economic system is this?

A baker finds her bread sells out every day, so she hires two workers and opens a second shop of her own to earn more profit. Which economic system is this?

A government requires food companies to meet safety standards before they may sell their products. What is this kind of government action called?

A government collects a share of workers' wages and of sales in stores in order to pay for roads and schools. What is this collection called?

Geographers compare countries using measures such as literacy rates and the share of workers employed in factories. What are measures like these called?

Economies often shift from mostly agricultural activity to manufacturing, and then to a third stage of economic development. What kind of work grows most in that third stage?

A company buys shoes in large amounts from a factory and sells them to shoe stores rather than to shoppers. What kind of activity is this?

A shop repairs bicycles for customers instead of building new ones. Which part of the economy does that shop belong to?

A factory turns raw cotton into cloth, and a family later buys that cloth and uses it. What is the family's part of this process called?

In a traditional economy, most of what a family farms, hunts, or makes goes where?

In a command economy, the government owns most farms, factories, and natural resources.

A shortage of coffee beans sends coffee prices up in a market economy. What set that new price?