Types of Economies Flashcards
1
Q
Three questions each economy answers
A
What to produce?
How it should be produced?
Who should it be produced for?
2
Q
Traditional or Subsistence Economies
A
Households work to produce goods for their own needs and wants. Exchange took place in form of sales
3
Q
Planned Economies
A
e.g North Korea , Cuba - state ownership and control of most economic resources . state answers the economic questions and there is no competition
4
Q
Free Market Economies
A
Private ownership of economic resources, consumers decide what is produced by their demand, firms aim to make profit and quantity supplied
5
Q
Mixed Economies
A
Some private and state owned organizations. Government still holds majority role
