Classifying Types of Economic Activity: Market, Traditional or Command?
Decide whether the following activities are examples of a market, traditional, or command economy. Explain your answers.
1. Ralph becomes a police officer because his father was one- it runs in the family.
2. Alice thinks that her community needs another discount computer store, so she decided to start her own business.
3. Norton is retired now, so he collects Social Security.
4. Trixie refused to buy a pair of jeans because they cost too much.
5. Every September, George buys a new Chevrolet because every year he buys a new Chevrolet.
6. Gracie and her family live in housing which the federal government provides a reduced rent.
7. To increase his income, Huang Peillin raises chicken, ducks and geese, which he and his family sell at a local free market in northern China.
8. The Soviet State Planning Commission (Gosplan) decided how many tons of coal should be produced.
9. Stock market prices decline in Tokyo because of large offerings of steel stocks for sale.
10. In Mexico City, business slacks off for lunch at 2:30 p.m. and gets started again around 5:00 p.m.
11. The health care Cubans receive is from the state.