market economy system Flashcards
1
Q
what is an economic system?
A
an economic system is a method of allocating scarce resources
2
Q
what is a planned economy?
A
an economic system in which the government manages the allocation of scarce resources
3
Q
what is a market economy?
A
an economic system in which the market forces of demand and supply manage resource allocation
4
Q
what is a mixed economy?
A
an economic system that is a mixture of the planned and market economy
