Economic systems

Question 1

Define economic system

Answer 1

This is how a country’s economy is organized. It is the method used by society to organize and distribute resources, goods and services

Question 2

List the 4 types of economic systems

Answer 2

command/planned/socialist, free market/capitalist, subsistence/traditional, mixed

Question 3

What is a subsistence economy?

Answer 3

This is where the people produce just enough to survive and bartering is prevalent

Question 4

Define command economy

Answer 4

This economy is run entirely by the government and has no private sector

Question 5

What is a free market economy?

Answer 5

This economy is based on supply and demand and has little to no government control as private individuals own resources

Question 6

What is a mixed economy?

Answer 6

In this economy there is a combination of the free market economy and the command economy. It has both the private and public sectors present