6) Types of Economy Flashcards
1
Q
Who are the 3 actors within an economic system?
A
1) Individuals
2) Firms
3) Government
2
Q
What is a planned economy?
A
An economic system where government, through a planning process, allocates resources in society
3
Q
What is a free market?
A
An economic system that resolves the basic economic problems mainly through the market mechanism
4
Q
What is a mixed economy?
A
An economy where both the free market mechanism and the government planning process allocate significant proportions of total resources
