Emergence of Economic System Flashcards
System of production, resource allocation, and distribution of goods and services within a society or a given geographic area.
economic system
includes the combination of the various institutions, agencies, entities, decision-making processes, and consumption patterns that comprise a given community’s economic structure
economic system
organizes the distribution and exchange of a country’s goods, resources, and
services
economic system
Basic economic questions
-What to produce
-How to produce goods and services, and how much of these goods to make
-Whom to produce?
-How economic systems must cope with change
four main types of economic systems
-Traditional Economic System
-Command Economic System
-Market Economic System
-Mixed Economic System
The most basic of all the economic types and in practice since ancient times
Traditional Economic System
system involves very little division of labor (in other words, individuals specializing in producing specific
goods) and very little in the way of economic governance
Traditional Economic System
more advanced economic system compared to the traditional financial system
Command Economic System
involves planning from a centralized point, either a local government or indeed the
national government, as under communist rule
Command Economic System
system where the laws of supply and demand direct goods and services
Market Economic System
a mix between the command economy and the market
economy
Mixed Economic System
an economic system combining private and public enterprises
Mixed Economic System
