1.1.6 - Free Market, Mixed & Command Economies Flashcards
1
Q
What Does The Economic System Aim To Do?
A
Allocate scarce resources.
2
Q
What Is A Free Market Economy?
A
An economy which has no government intervention in the allocation of resources or the distribution of goods and services.
3
Q
What Is A Command Economy?
A
An economy in which all of the resources are owned by the state and the government controls the distribution of goods and services.
4
Q
What Is A Mixed Economy?
A
Is a blend of the free market and command economy as individuals, firms and the government own factors of production and distribute goods and services.
5
Q
Who Created Free Markets?
A
Adam Smith.
6
Q
Who Created Mixed Economies?
A
Friedrich Hayek.
7
Q
Who Created Command Economies?
A
Karl Marx.
