chapter 13- market economic system

Question 1

mixed economy

Answer 1

ownership of scarce resources and decisions is split between private and public sector

Question 2

planned economy

Answer 2

it relies on government to allocate resources and make decisions

Question 3

what does an economic system describe

Answer 3

it describes the way the economy is organised and run.

Question 4

what is a market economy

Answer 4

a market economy relies on market forces of demand and supply to allocate resources with minimal government intervention

Question 5

definition of private sector

Answer 5

refers to the economic activity of private individuals and firms. their main aim is to maximise profit for its owners.

Question 6

definition of private sector

Answer 6

refers to the economic activity directly involving the government , such as provision of state education and healthcare services. their main aim is to provide a service.