1.3 Approaches to the Economic Problem Flashcards
1
Q
What is the market?
A
The place where buyers and sellers meet?
2
Q
Name the three types of Economy.
A
Market Economy, Planned Economy, Mixed Economy.
3
Q
What is a market economy?
A
A market economy is where all resources are allocated by private individuals and groups.
4
Q
What is a planned economy?
A
Where all resources are allocated by the government.
5
Q
What is a mixed economy?
A
Where some resources are allocated by the government and other resources by private individuals and groups.
6
Q
What is the public sector?
A
Organisations controlled by the government, service not profit.
7
Q
What is the private sector?
A
Run by Individuals for profit.
