types of economy Flashcards
1
Q
economic systems
A
function of an economy is to resolve the basic economic problem
2
Q
5 types of economy
A
traditional
command
market
pure
mixed
3
Q
traditional
A
based on cultural and rituals
4
Q
command
A
relies on the government
5
Q
market
A
consumer choices determine how industries and financial markets operate
6
Q
pure
A
no government involvement at all
7
Q
mixed
A
limited government involvement while also applying free market concepts
8
Q
free market economy
A
an economic system which resolves the basic economic problem through the market mechanism
9
Q
market mechanism
A
a system of the market where the forces of demand and supply determine the price and quantity of goods and services traded
