unit 2: ECONOMIC SYSTEMS

Question 1

What is the free market economy?

Answer 1

The free market economy is an economic system in which the market is regulated by THE LAW OF SUPPLY AND DEMAND.

Question 2

What is the planned economy?

Answer 2

the planned economy is an economic system in which the structure of the market is planned by the state.

Question 3

What is the mixed economy?

Answer 3

The mixed economy is an economic system in which some goods and services are produced by the government and some by private enterprise.

Question 4

What are the differences between a free market and a planned market?

Answer 4

Question 5

what does the term “ distribution channel” mean?

Answer 5

it’s the chain of business or intermediaries through which a good or service passes until it reaches the end consumer.

Question 6

What is State capitalism?

chủ nghĩa tư bản nhà nước

Answer 6

it is a political system in which the state has control of PRODUCTION and THE USE OF CAPITAL.

Question 7

What is State socialism?

chủ nghĩa xã hội nhà nước

Answer 7

It is a political system in which the state has control of INDUSTRIES and SERVICES.

Question 8

how does the government influence the market economy?

Answer 8

There is no direct government intervention in the market economy.