Economic Systems Models and the US Economy, Characteristics of a Market System, Circular Flow Model Flashcards
Every country must answer 3 key questions when allocating scarce resources and meeting its population’s needs:
what, how, and for whom to produce
Free market systems where the government doesn’t intervene
Pure capitalism + laissez-faire
___ are in charge of answering economic questions in Free Market systems
Individuals
In a ___ Economy, the government controls all resources and makes all major decisions about production, distribution, and ownership.
Command
In a ___ Economy, people place more weight on their religious or cultural values
Traditional Economy
example of a traditional economy
Amish
close example of command economy
North Korea
close example of pure capitalism economy
US
There is no pure version of a free market or command system, and all systems combine elements of both. This is called a ___ Economy
Mixed
