1. What is a Free Market Economy? Give an example of how goods and services are distributed. (5 points)
2. What is a Command Economy? Give an example of two countries that has/had this type of economic system? (5 points)
3. What is a Mixed Economy? Why is the US considered mixed? (5 points)
Critical Thinking – (2 parts) 15 points
Read about North Korea’s economy at: http://www.heritage.org/index/country/northkorea
a. How does a Command or Planned Economy affect the citizens of a country that maintains this type of economy?
b. With the information you have found, which type of Economic System do you think would work the best: Free Market, Command or Mixed? Please support your answers and use your own words. Make me believe your opinion.