economic systems 4

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Describe how a market economy functions and the relationships of its major subdivisions or aggregates, such as the government, households, and business sectors. Emphasis will be placed on the U.S. Economy and its linkages to the global economy (CO1)

Construct and interpret economic graphs (CO2)

Analyze economic policies and predict their effects, especially regarding relating theory to real world situations (CO5)

You are going to write a short paper that involves the concepts explored in the material that you have read. We will focus on comparing economic systems.

How do economic systems (central planning versus mixed market) differ in the way they answer the three core economic questions presented in chapter 1?

What specific problems exist with central planning that have led to shortages and surpluses for countries employing this system in the past?

What are the causes of market failure in competitive markets? Using Microsoft Excel or PowerPoint, construct a graphical example of market failure.This should be embedded into a word document.

Provide two specific examples of how government intervention can improve outcomes in markets that would otherwise fail in a competitive market.


The paper should be presented in Microsoft Word, and be no longer than three pages. Please double-space your work.

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