The Economic System Flashcards
1
Q
What is an economic system
A
how a country allocates resources to combat the economic problem
2
Q
what is a market economy
A
resources are privately owned an descisions are made by owner in their own self interest
3
Q
what is a planned economy
A
resources owned collectively, descisions made by a planning authority
4
Q
what is a mixed economy
A
combine the elements of market and planned economy (private businesses and government have control)
5
Q
What is a pure market conomy
A
forces of supplt and demand determine who/what/how
