chapter 13 - market economy system Flashcards
1
Q
definition of:
economic system
A
describes the way in which an economy is run and organised, including the alternative views of how scarce resources are best allocated
2
Q
three types of economy system?
A
market
planned
mixed
3
Q
definition of:
market economy
A
economic system relies on market forces of supply and demand to allocate resources with minimal government intervention
4
Q
definition of:
planned economy
A
economic system relies on the gov to allocate resources
5
Q
definition of:
mixed economy
A
a combination of planned and market economy system, with some resources controlled by private individuals and firms
6
Q
advantages and disadvantages of market economic
A
advantages:
- efficiency
- incentive
- freedom of choice
disadvantages:
- income and wealth inequalities
- social hardship
- wasteful competition
- environmental issues
