Types Of Economies Flashcards
1
Q
Command/planned economy
A
An economic system where government, through a planning process, allocates resources in society
2
Q
Economic system
A
A complex network of individuals, organisations, and institutions and their social and legal interrelationships which allocate resources
3
Q
Free market economy
A
An economic system that resolves the basic economic problems mainly through the market mechanism
4
Q
Mixed economy
A
An economy where both the free market mechanism and the government planning process allocate significant proportions of total resources
