Economic Systems & Daily Life

Total Word Count: 267
   Send article as PDF   

When compared to a mixed-market economy, a command economy typically has

a much smaller wealth gap.

What is the best definition of ownership?

Ownership is the right to possess land or goods

A wealth gap is an economic difference between

classes.

In a mixed market economy, property owned by an individual

can help promote personal wealth.

What is one argument in favor of the wealth gap?

Investments by the upper class create lower-class jobs.

From 2001 to 2011, unemployment in the United States

sharply increased.

The difference in income between the richest and poorest citizens is called the

Wealth Gap

What is one argument against the wealth gap?

Economic growth will likely decline over time.

Private property is land or goods

owned by an individual.

Based on this graph, how much wealth did the top 20 percent of the population hold?

about 35 percent ? Wrong 55 percent . Wrong

is the act of working in exchange for an income.

Employment

Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in

a mixed market economy with some government regulation.

What is one possible effect of high unemployment in a mixed market economy?

A lack of income will weaken the buying power for many people.

How can the government reduce the wealth gap in a mixed market economy?

The government can improve education to provide new opportunities for workers in the lower class.

Based on this graph, what can be concluded about the economy between 1991 and 2008?

The economy was getting stronger because employment was high.

Scroll to Top