Define a Market

Question 1

Define a Market

Answer 1

The interaction of buyers and sellers

Question 2

What is a mixed economic system?

Answer 2

A mixed economic system is a blend of a market and a planned economy where individuals, firms, and the government own factors of production and distribute goods and services.

Question 3

Define a Market Economy. Give an example.

Answer 3

Resources are owned privately and all decisions are made by the owners of resources acting in their own self interest.

E.g. Australia

Question 4

Define a Planned Economy. give an example.

Answer 4

An economy in which resources are owned collectively, and decisions are made by a planning authority is called a planned economy

E.g. Soviet Union (communism

Question 5

What allocates resources and distributes income a free-market economy?

Answer 5

The invisible hand

Question 6

What is a mixed economy

Answer 6

A mixed economic system is a blend of a market and a planned economy where individuals, firms, and the government own factors of production and distribute goods and services.