Types Of Economic Systems

Question 1

Market economy

Answer 1

Economic system in which supply, demand, and the price system help people make decisions and allocate resources; same as free enterprise economy

Question 2

Mixed economy

Answer 2

Mixture of the three basic economic systems

Question 3

Traditional economy

Answer 3

Economic system in which the allocation of scarce resources and other economic activity is the result of ritual, habit, or custom

Question 4

Command Economy

Answer 4

Economic system characterized by a central authority that makes most of the major economic decisions