Chapter 5 - Types of Economy Flashcards
1
Q
Define - “Command Economy”
A
An economic system where government, through a planning process, allocates resources in society
2
Q
Define - “Economic System”
A
A complex network of individuals, organisations and institutions and their social and legal inter-relationship which allocate resources.
3
Q
Define - “Free Market Economy”
A
An economic system that resolves the basic economic economic problems mainly through market mechanism.
4
Q
Define - “Mixed Economy”
A
An economy where both the free market mechanism and the government planning process allocate significant proportion of total resources.
5
Q
Define - “Protectionism”
A
When a government tries to help industries in its own country by taxing or restricting foreign goods.
