Major Types Of Economic Systems Flashcards
Free market system
Economic system in which decisions about what to produce and in what quantities are decided by the markets buyers and sellers
Economic System
Policies that define a society’s particular economic structure
Rules by which a society allocates economic resources
Capitalism
Economic system based on economic freedom and competition
USED TO DESCRIBE FREE MARKET SYSTEM
Planned system
Economic system in which the government controls most of the factors of production and regulates their allocation
Socialism
Economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries
Communism
Planned system with least amount of economic freedom
Nationalizing
Government takeover of selected companies or industries
Privatizing
Turning over services once performed by the government to private businesses
Basic Economic systems
Free market and planned
Subsistence economy
No trade
Production=consumption
