Practice: Comparing Economic Systems Practice Assignment
Introduction to Business and Marketing (S4640769) Kyle Veyna
Points possible: 40 Date: __8/30/18__________
Reflect (5 points)
Answer the questions about the ch
...
Practice: Comparing Economic Systems Practice Assignment
Introduction to Business and Marketing (S4640769) Kyle Veyna
Points possible: 40 Date: __8/30/18__________
Reflect (5 points)
Answer the questions about the characteristics of various economies.
1. In which type of economy are individuals least likely to determine which products they consume, and
why? (1 point)
In a Command economy individuals can expect to consume products the government wants them
too. This is because in a Command economy the government controls everything including
goods.
2. A Japanese car company produces its cars in the United States.
a) How does the value of the cars produced by the Japanese company in the United States impact the
United States' Gross Domestic Product (GDP), and why? (1 point)
It impacts the US’s GDP because since the car company manufactures in the States then the
profit goes under the GDP. Since the company is in the states and we are talking about GDP all
the profits fall under the GDP
b) How does the value of the cars produced by the Japanese company within the United States impact
the United States' Gross National Product (GNP), and why? (1 point)
It doesn’t affect them because since the Japanese country is producing inside the US it doesn’t
account for the GNP. GNP is the national value and since this is a Japanese country inside the US
the value isn’t accounted for.
3. In which type of economy would both private businesses and the government influence the factors of
production, and why? (1 point)
A mixed economy because inside a mixed economy there is room for private corporations but
also room for the government to control certain things.
4. In which type of economy is a business owner most likely to benefit from free enterprise? (1 point)
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