Which of the following best defines 'institutions' as they relate to economic develop O The formal and informal rules governing the organization of society. O Buildings and other major structures. O Long-lasting organizations and companies. O The formal branches of government.

O For whom are goods and services to be produced? Who answers the three key economic questions in a traditional economic system? O custom & tradition O individual producers and consumers O a central authority O government and individuals Who answers the three key economic questions in a Market economic system?

1. Distinguish between a command economy and a market economy. Give examples. 2. Discuss the characteristics of a market system. 3. Analyze a circular flow model showing the interaction among households, business firms, government, and the foreign sector.