MARKETS Flashcards
1
Q
Market economy (capitalist)
A
Resources are owned privately
All decisions are made by the owners of resources
Allocate resources using price system
2
Q
Planned economy (communist)
A
Resources are owned collectively, by the state
Decisions are made by a planning authority (government)
3
Q
The Role of Markets
A
Markets help to allocate scarce resources to satisfy the many competing wants in an economic system.
It coordinates decisions between buyers and sellers in a decentralised way, when people engage in exchange, they benefit
