Economic Systems Flashcards
What is an Economic System?
economic system is how a society organizes (PDC)
* production
*distribution
*consumption
What is a Traditional Economy?
BRB
*based on customs and traditions
* rural or tribal societies
*barter.
What is a Command Economy?
(Communism)
*government makes all economic decisions and owns all resources
*North Korea
What is a Market Economy?
DBP
*driven by individuals
*based on supply and demand.
*Promotes efficiency
* United States
What is a Mixed Economy?
*combination
*private ownership and government intervention
*Canada, France.
Key Characteristics of a Traditional Economy?
SCL
*Stable
*community-centered
* lacks innovation and growth.
Key Characteristics of a Command Economy?
BLC
*basic needs
*limits freedom
*consumer choice.
Key Characteristics of a Market Economy?
VEL
* variety
*efficiency
* lead to inequality.
Key Characteristics of a Mixed Economy?
BGP
*Balances private freedom
*government intervention
*public interests.
Decision-Maker in a Traditional Economy?
*Customs
*traditions.
Decision-Maker in a Command Economy?
Government.
Decision-Maker in a Market Economy?
Individuals and businesses.
Decision-Maker in a Mixed Economy?
*government
*private sector.
Ownership of Resources in a Traditional Economy?
Often communal.
Ownership of Resources in a Command Economy?
State-owned.
