different types of economies Flashcards
1
Q
Opportunity Cost
A
cost of an economic decision measured in terms of the best alternative choice forgone.
2
Q
private sector’s aim
A
is to make profit
3
Q
public sector’s aim
A
is to provide essential goods and services
4
Q
a free market economy
A
relies on the market forces of demand and supply to allocate scarce resources via private sector
5
Q
planned economy
A
government allocates scarce resources
6
Q
mixed economy
A
combination of planned and free market economy
