How traditional, command, market and mixed economies decide what to make
Grade 12 Social Studies Worksheet - Building Confidence
Circle the best answer.
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Four made-up economies (made-up places, described for practice). Columns: Economy, Who decides what to make, How most prices are set, Who owns most farms and factories. Alder, Elders, following custom, By custom and barter, Families and the village; Bexley, A central planning office, Set by the office, The state; Corvan, Owners, answering to buyers, By buying and selling, Private owners; Dunmore, Owners and the government, Mostly by buying and selling; some set by law, Private owners and the state. The table says who decides and how. It does not say which economy is better.
Ari reads the table. Which description fits Dunmore?
- A command economy: the government decides what to make and the planning office sets the prices.
- A traditional economy: custom decides what is made and how the harvest is shared out.
- A mixed economy: owners and the government both decide, and some prices are set by law.
- A market economy: owners decide and prices come from buying and selling, with no law involved.
Bo asks how Corvan answers the question "for whom?" Which answer fits the table?
- Goods go where the planning office sends them, so the office decides who gets each good.
- Goods go by custom, with elders deciding who gets each good, as the village has long done.
- Goods are shared out equally, so each family receives the same amount of each good.
- Goods go to those who can pay the price, so prices and buyers' money decide who gets what.
Jun lists four claims. Which claim goes beyond what the table shows?
- Corvan makes more goods per person than Bexley.
- Bexley's state owns most farms and factories.
- Owners in Corvan and Dunmore both have a say in what is made.
- Alder's prices are set by custom and barter.
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Bicycles in Corvan (made up for practice). More families begin to want bicycles. Shops sell out of bicycles within days, and shoppers begin to offer more money for the ones left.
What signal tells makers in Corvan to make more bicycles, Kira?
- Elders meet and decide how many bicycles the village should be given for the year.
- A planning office orders the bicycle factories to raise their output for the coming year.
- The government lowers the bicycle price, so that makers hear that more bicycles are needed.
- Prices rise as shops sell out, so makers see that making bicycles now pays more.
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Bicycles in Bexley (made up for practice). The plan sets 100 bicycles a month at $120 each. Families now want 140 bicycles a month at that price. The office reviews its plan once a year.
What does Luz expect until the plan is next reviewed?
- A shortage of 40 bicycles a month, because the fixed price does not rise to call out more bicycles.
- The price rises to $150 on its own, which brings the 140 bicycles that families want.
- A surplus of 40 bicycles a month, because the fixed price is higher than families want to pay.
- Factories make 140 bicycles at once, because families now want that many at $120.
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Farming in Alder (made up for practice). Families have grown wheat the same way for many generations. Elders divide the harvest by long-standing custom, and the village swaps goods by barter.
How does Alder answer the question "how to make?" according to the card, Milo?
- By a vote of the families each year on which farming methods to try in the coming season.
- By the planning office's targets: farms must meet quotas that the office sets for each village.
- By inherited methods: families farm the way earlier generations did, and custom guides the sharing.
- By competition between farms: the farm with the lowest prices wins most of the buyers.
Use this
Four made-up economies (made-up places, described for practice). Columns: Economy, Who decides what to make, How most prices are set, Who owns most farms and factories. Alder, Elders, following custom, By custom and barter, Families and the village; Bexley, A central planning office, Set by the office, The state; Corvan, Owners, answering to buyers, By buying and selling, Private owners; Dunmore, Owners and the government, Mostly by buying and selling; some set by law, Private owners and the state. The table says who decides and how. It does not say which economy is better.
Noah asks who owns the factories in Bexley and what follows. Which statement fits the table?
- Families and the village hold them, and elders decide by custom what each one makes.
- The state owns them, so the planning office can direct what the factories make.
- Private owners hold them, and they choose what to make by looking for the largest profit.
- The state owns them, but each factory manager chooses what to make without the office.
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Services in Dunmore (made up for practice). Bakeries and bicycle shops are privately owned and set their own prices. The government runs street lighting, paid for from taxes, and sets the fares on the city bus by law.
Which pair of services shows the government's part in Dunmore's mixed economy, Pia?
- Street lighting and bus fares, where the government provides a service or sets the price.
- Bakeries and bus fares, where the government sets prices on goods that families buy each day.
- Bakeries and bicycle shops, where the owners are paid by the government to make the goods.
- Street lighting and bicycle shops, where taxes pay for services that private owners run.
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Scarcity (made up for practice). In each of the four places, land, workers and tools are limited, while families want more goods than the places can make.
Which statement does Tala find correct for the four places?
- Corvan avoids scarcity, since prices rise until each family can buy the goods it wants.
- Bexley avoids the choice, since the planning office draws up one plan for the whole country.
- Each must still choose what to make, since resources are limited in any system.
- Alder faces no choice, since custom already settled long ago what the village makes.
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a student's note (made up for practice). "In a market economy the government decides what to make, and in a command economy buyers decide."
Zee edits the note so that it is correct. Which edit is correct?
- In a market economy elders decide by custom; in a command economy buyers decide through prices.
- In both a market economy and a command economy, the government decides what to make.
- Market: owners and buyers decide through prices; command: a central office decides.
- In a market economy a central office decides; in a command economy owners and buyers decide.