NAME Kareem Ibrahim DATE 23/09/2025 CLASS 11C
Guided Reading Activity
Economic Systems and Decision-Making
Lesson 1 Economic Systems
Review Questions
Directions: Read each main idea and answer the questions below. Refer to your textbook as you write the
answers.
A. Economies Based on Tradition
Main Idea: A traditional economic system answers the questions of WHAT, HOW, and FOR WHOM to produce
based on ritual, habit, or custom.
1.How did nineteenth-century Inuit people ensure their scarce resources would support them through harsh
Canadian winters?
2. What are some advantages to a traditional economic system? What are some disadvantages?
B. Economies Based on Command
Main Idea: In a command economic system, a central authority—for example, a tribal leader, central
committee, president, or dictator—determines WHAT, HOW, and FOR WHOM to produce.
1.Explain the difference between socialism and a pure command economy.
2. What is an example of a command economy today? What are some socialist economies?
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Guided Reading Activity cont.
Economic Systems and Decision-Making
3. How do command or socialist economies benefit their citizens?
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4. Name six disadvantages of a command economy. Give at least one illustration of each of these disadvantages.
A.
B.
C.
D.
E.
F.
C.Economies Based on Markets
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Guided Reading Activity
Economic Systems and Decision Making
Main Idea: In a market economy, the people themselves determine WHAT, HOW, and FOR WHOM to
produce.
1.What do people in a market economy do to guide production?
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Guided Reading Activity cont.
Economic Systems and Decision Making
Guided Reading Activity cont.
Economic Systems and Decision-Making
2. Explain the difference between capitalism and a market economy.
3. Name seven advantages to a market economy. Give at least one illustration of each of these advantages.
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B.
C.
D.
E.
F.
G.
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4. Name the significant disadvantages of a market economy.
Summary and Reflection
Directions: Summarize the main ideas of this lesson by answering the questions below.
Compare and contrast two of the three economic systems discussed in this lesson. Consider how each system
answers the questions of WHAT, HOW, and FOR WHOM? In your opinion, which system works best, and why?
