Unit 6 Flashcards
1
Q
What is a command or centrally planned economy?
A
A command or centrally planned economy is an economic system where government, through a planning process allocates resources in society.
2
Q
What is an economic system?
A
An economic system is a complex network of individuals, organisations and institutions and their social and legal interrelationship which allocates resources.
3
Q
What is a free market economy, or capitalist/market/free enterprise economy?
A
A free market economy is an economic system which resolves the basic economic problems mainly through the market system.
4
Q
What is a mixed economy?
A
A mixed economy is where both the free market mechanism and the government planning process allocate significant proportions of total resources.
