types of economy

Question 1

command economy

Answer 1

an economic system in which the government controls a country’s economy, deciding what s produced, how it is produced and for whom

Question 2

mixed economy

Answer 2

some goods and services are provided by the government and some are left t the free market

Question 3

market economy

Answer 3

allocation of resources is left to the free market forces of supply and demand

Question 4

pros of a free market economy

Answer 4

most efficient in terms of using resources to meet consumers wants and needs

Question 5

cons of a free market economy

Answer 5

leas to an unequal distribution of wealth and income, and the sick and elderly can’t work so it is unfair

Question 6

why are most economies mixed

Answer 6

most countries believe the government should intervene to provide a minimum standard of living and correct other market failures

Question 7

economy diagram

Answer 7

PPC capital goods against consumer goods

Question 8

incentives in a market economy

Answer 8

ability to earn profit, high wages, and property. prices refelct how valuable the good or service is o the ability to afford valuable goods/services. allocative efficiency will always be achieved eventually according to adam smiths invisible hand

Question 9

incentives in a command economy

Answer 9

all incentives come from the state