17.2 Flashcards
Economic Systems (7 cards)
What are the four types of economic systems?
traditional, planned, mixed, market
What is an economic system
the coordination of the production and distribution of goods and services
What is a traditional/subsistence economy?
An economic system where a community is self sufficient and produces enough to survive, not aiming to make a profit.
What are the strengths and weaknesses of a traditional economic system
Strengths: Little environmental damage and waste.
Weakness: Natural events such as flooding and bushfires can destroy agricultural crops which are the group’s main food sources.
What is a market economy?
An economic system in which private individuals exchange goods and services with consumers in a free market and, in return, keep the profit.
What is a planned economy
an economic and political system where the government or state predominantly owns the resources and decides what goods and services to produce, how to produce them, and who they will be distributed to. (communism)
