HILLSIDE SCHOOL

Civic & Ethical Education

SHORT NOTE AND QUESTIONS for grade 9
2013 Week 2
ECONOMIC SYSTEM
An economic system is a system by which we produce and distribute the commodities and
services we need in life.

 The term we use for needs and wants is called Demands.

 Our demands are unlimited but the supply of what we want and need is limited,
particularly where resources are limited. Therefore we have to find a way to balance our
demands with our supply through our economic system.

THERE ARE THREE ECONOMIC SYSTEMS IN THE WORLD

These are:

1. Command ( Planned Economic System)

In such economic system, economic decisions of what to produce and how to
produce or distribute is centrally controlled by the government.
2. Free Market Economic System
This type of economic system gives the freedom of producing and distributing goods
and services to individuals.
3. Mixed Economic System
This is an economic system which allows freedom both to individuals and the
government to involve in the economic system. It is a mixture of the two economic
systems.
(FOR FURTHER UNDERSTANDING REFER YOUR TEXT BOOK PAGE 113-119)
Give short explanation for the following questions

1. Explain what the term demand is.

2. Do you think that human wants are limited?
3. what is the difference between command and free market economy?
4.What is the need to choose an economic system?
5. what is an economic system?
Set by Mr, Wondimshet.w
 HILL SIDE SCHOOL
CIVICS SHORT NOTE AND QUESTIONS FOR GRADE 10(2013)
Week 2
Eonomic systems
 An economic system is a system by which we produce and distribute the
commodities and services we need in life.
 The term we use for needs and wants is called Demands.
Basically there are 3 major economic systems in the world. These are :-
1. Free market economy
2. Command economy and
3. mixed economic system.
Free market economic system:- an economic system that allows the production
and distribution of commodities to individuals.
Command economic system :-Is a system by which the production and
distribution of goods and services is centrally produced by the government.
Mixed economy:-is a mixture of the two economic systems.
 Globalization:-is interconnectedness among different nations of the world
socially, economically and politically.

I. Explain the following questions.

1. What is the importance of choice of economic systems?
2. What is the other name for command economy?
3. What is Globalization?
4. What does it mean the term demands?
5. Explain the negative and positive effect of globalization.
For more information, refer your text on page 118-120
Prepared by Mr. wondimshet.w