CHAPTER 6 TYPES OF ECONOMY Flashcards
1
Q
Command or planned or centrally planned economy
A
An economic system where government, through a planning process , allocates resources in society.
2
Q
Economic system
A
A complex network of individuals, organisations and institutions and their social and legal interrelationships what allocates resources.
3
Q
Free market economy, or free enterprise economy or capitalist economy or market economy
A
An economic system that resolves the basic economic problems mainly through the market mechanism.
4
Q
Mixed economy
A
An economy where both free market mechanism and the government planning process allocate significant proportions of total resources.
