Chap 32 Flashcards
What is economy
The way in which goods and services are made, sold and used in a country
Explain economic system
The method that countries use to distribute economic resources and trade goods and service
Explain public sector
Part of the economy that is owned and controlled by the government
Explain private sector
Businesses owned by private individuals that produce and sell goods and services with the aim of making a profit
Define centrally planned economy
Where the government has a lot of control over economic resources
Define free market economy
Where private individuals control resources
Define mixed economy
Where both the government and private individuals share the resources
Explain circular flow of income
Shows how economic resources move through an economy
