Types of economies Flashcards
1
Q
FREE MARKET ECONOMY
characteristics
A
- Solve economic problem with minimum state intervention
- Market forces supply & demand
- Profit driven
- Competition
2
Q
COMMAND ECONOMY (characteristics)
A
- State makes most resource allocations
- CELL
3
Q
MIXEDE ECONOMY (characteristics)
A
- Combination of free market and command economy (combines private & state enterprise)
4
Q
What do governments control with products?
A
- What products you can buy, age allowance..
- Fast-food products have high food standards, good reputation, reliable and trustworthy for health, they tax products
- Government license people to drive etc..
5
Q
Name two economies which are more command but have some free market aspects
A
Russia and China
6
Q
Problems with free market economies
A
- No restrictions
7
Q
Problems with command economies
A
- If government makes wrong decision the affects so many people, information
- Limits economic growth & innovation
