Theme 1.1.6 Types of economy (unit 6) Flashcards
1
Q
Command/ planned/ centerally planned economy.
A
It is an economic system where government through a planning process, allocates resources in society.
2
Q
Economic system.
A
It is a complex network of individuals, organisations and institutions and there social and interrelationships which allocate resources.
3
Q
Free market economies.
A
An economic system that resolves the basic economic problems through the market mechanism.
4
Q
Mixed economies.
A
An economy where both the free market mechanism and the government planning process allocate significant proportions of the total resources.
