4) There are several economic systems around the world.

a) Describe how the five factors of production might work in a command and market economy. You

need to explain the five factors of production and how they might impact both the command and

market economy.

b) Market economy consists of a circular flow. Describe the model using key terms and explain what it

means.

c) The objective of an economic system is to have a positive balance of trade because of the 5 factors of

production. Explain why Canada might have more of a surplus of trade with its trading partners.