economic system Flashcards
1
Q
what is an economic system
A
it is the way society uses resources to produce goods and services to satisfy the needs and wants of people
2
Q
what is a mixed economy
A
is that economy in which both public and private sectors cooperate
3
Q
price mechanism
A
this is a system where the forces of supply and demand determine the quantity of the goods and services made available for exchange and at what price
4
Q
market mechanism
A
this will determine what price will change and what quantity will be supplied
5
Q
profit motive
A
public sectors want profit/private sectors want relief
