types of evonomy Flashcards
1
Q
centralised economi
A
resources allocated by government
2
Q
free market
A
market looks after itself
3
Q
mixed economy
A
free market with some gov intervention
4
Q
advantages of centralised
A
good use of FOP
low unemployment
low inequality
consistency
exact demands met
price control
5
Q
disadvantages of centralised
A
limits innovation
reduces freedom
reduces exports
eliminated competition
6
Q
advantages of free market
A
efficient allocation of resources
competition
innovation
growth
more choice
7
Q
disadvantages of free market
A
monopolies
negative externalities
absence of public goods
race to the bottom
8
Q
advantages of mixed economy
A
both sectors can survive
consumer freedom
incentives for innovation
government still have control
