Economic Systems Flashcards
1
Q
What are the different economic systems
A
- planned economic systems
- market economic systems
- mixed economic systems
2
Q
What is planned economic systems
A
- Government makes all decisions regarding the production
- enterprises and resources owned and controlled by government
- under full control of government
3
Q
What is market economic systems
A
- factors of production belong to individuals
- government is not actively involved
- differences between rich and poor people
4
Q
What is mixed economic systems
A
Some services are provided by government while some enterprise are owned by the state or private
individuals
Tax rates are usually high
5
Q
What is an economic system
A
The way in which a government runs the economy and distributes resources among the government, business enterprises and households
