Market economy

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/market-economy

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What kind of government does Market economy have?Ranges from laissez-faire (minimal intervention) to interventionist and dirigiste (active guidance)
2. What is the key economic drivers?Profit motive, competition, and consumer sovereignty
3. How do prices help people decide what to make and buy?Prices act like signals that show how much people want something, so producers know how much to make and buyers know how much to pay.
4. Why do businesses need to keep changing their products?Businesses change their products to stay popular and to beat other companies, so customers always have new and better choices.

Factors of Production: The resources-land, labor, capital, and entrepreneurship-used to produce goods and services.
Market Failures: Situations where the free market fails to allocate resources efficiently, often necessitating government intervention.
Planned Economy: An economic system where the government makes all decisions regarding production, distribution, and pricing.