Lesson 11- The mixed economy

Question 1

Define market economy

Answer 1

A market economy is one in where there is considerable freedom for buyers to buy what they want and sellers to sell their products.

Question 2

Define a command economy?

Answer 2

The government has the power to command the nation’s economic resources. The government decides what to produce, how to produce for whom to produce and when to produce.

Question 3

What are examples of Command economy?

Answer 3

China, Cuba and North Korea

Question 4

Define a mixed economy

Answer 4

In these economic systems there is both public sector and a private sector