Question

match the answers.
circular flow of economic activity
free enterprise
mixed economy
traditional system
market economy
an illustration of income flowing continuously from business to consumers
individuals own the factors of production, freely interacting with other buyers
an economic system based on customs and beliefs of a society.
serves the interests of consumers and businesses.
system that has characteristics of the command and market economies

Explanation:

To solve the matching, we analyze each term:

• Circular flow of economic activity: Defined as income flowing continuously (from business to consumers, etc.), so match with "An illustration of income flowing continuously from business to consumers".
• Free enterprise: Focuses on serving consumers and businesses' interests, so match with "Serves the interests of consumers and businesses".
• Mixed economy: Combines command and market economy traits, so match with "System that has characteristics of the command and market economies".
• Traditional system: Based on society’s customs/beliefs, so match with "An economic system based on customs and beliefs of a society".
• Market economy: Involves individuals owning production factors and free interaction, so match with "Individuals own the factors of production, freely interacting with other buyers".

Answer:

• Circular flow of economic activity : An illustration of income flowing continuously from business to consumers
• Free enterprise : Serves the interests of consumers and businesses
• Mixed economy : System that has characteristics of the command and market economies
• Traditional system : An economic system based on customs and beliefs of a society
• Market economy : Individuals own the factors of production, freely interacting with other buyers