Economic Systems Flashcards
What is an Economic System?
An economic system is the way in which a society allocates scarce resources.
What is a Traditional/ Subsistence Economy?
A traditional economy is an economy based on traditions and customs where nearly he whole population is engaged in producing just enough food for their needs
What is a Command Economy?
A command economy is an economy where the economic resources are owned, planned and controlled by the state.
What is a Free Market Economy?
A free market economy is an economy where the economic resources are owned largely by the private sector with very little state intervention.
What is a Mixed Economy?
A mixed economy is an economy where the economic resources are owned and controlled by both the private and public sectors.
Who isa Stakeholder?
A stakeholder is an individual or group with a direct interest in the operations and performance of a business.
