1.In a short paragraph, define the term economic systems. Then give two examples of different types of economic systems. Then, give at least 2 similarities and/or differences between the economic systems you chose.

2.In a short paragraph, choose which economic system you think is the most effective. Give the definition of the economic system you chose. Be sure to give twospecific examples of why they economy is efficient to support your answer.

3.In a short paragraph, describe what the free enterprise system is. Then, give 2 goals of the free enterprise system with their meaning. Be sure to describe what you think will happen if one of these goals were no longer functioning properly. (What would happen to the system if this happened?)

4.In a short paragraph, explain what the circular flow chart is. Then, explain how the chart works. Be sure to include an example of how households and firms rely on each other. You can use the picture below to help you. (You do not need to include the government's role in the flow chart unless you want to)

Goods and services Consumer expenditure Wages, rent, dividends Households Firms Factors for production