Economic Systems Flashcards
1
Q
What are the types of economic systems?
A
Mixed
Market
Command/Planned
Traditional
2
Q
What happens in a command economy?
A
Government controls economy
& decides how to use and distribute resources
3
Q
What happens in a market economy?
A
Consumers & businesses decide
what to produce and purchase
Production based solely on demand in the marketplace
4
Q
What happens in a mixed economy?
A
Combines elements of market &
command economy
Economic decisions are made by individuals in the market.
