Chapter 15: Mixed economic system Flashcards
Mixed economic system
An economy in which both the private and public sector play an important role
Maximum price
A limit or cap on a price set by a government or an organisation
Minimum price
The lowest price that can legally be set
Rationing
A limit on the amount that can be consumed
Lottery
The drawing of tickets to decide who will get the products
Nationalisation
Moving the ownership and control of an industry from the private sector to the government
Public corporation
A business organisation owned by the government which is designed to act in the public interest
Cost benefit analysis (CBA)
A method of assessing investment projects which takes into account social costs and benefits
Multinational Companies (MNC’s)
Companies which produce in more than one country
