Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards. What would you like to do?
why the econoim system?
To determine how they use their limited resources effectively
Different types of economic systems
- Traditional economy
- Market economy (unplanned)
- Command economy (planned)
What is traditional economy?
Economy fund in under-developed countries
examples of of traditional economy:
- Pygmies of Congo
- Eskimos and Indian tribe
- Australian Aborigines
What is a Command Economy?
The government determines what, how and for whom goods and services are produced.
What are the two types of planned economy?
What is a Strong Command?
government makes all decisions (communism)
What is a Moderate command?
Some form of private enterprise, but the states of the major resources (socialism)
What is A Unplanned economy?
Also known as Free Market
Businesses and consumers decide what they will produce and purchase and how much.
- Production is determined by price.
Disadvantages and advantages
Advantages: Creates competition which leads to higher qualities of products and more choices.
Disadvantages: Big rift between wealth and poor
NOTE: A true market economy does not exist
What is a Mixed economy
- Combination of planned and unplanned economies.
- Government takes care or needs
- market takes care of wants e.g Australia, America, England
Advantage and disadvatage
Advantage:Balance of needs and wants are shared
Disadvantage: Citizens have to pay taxes
What is a Socialism economy?
Everything you own is controlled and owned by the state. (needs more than wants)
E.G Egypt, Syria, Tanzani, Sri Lanka
What a communism Economy?
Everyone has the same, goods are shared equally E.G Cuba, Vietnam, North Korea, Laos and China
What is a Fascism economy
Has complete power and led by a Dictator
E.G Germany (35-45) Italy (22-45) Spain (36-75)
What is a dictatorship?
A government that has complete power over a country or state. Practiced by one ruler
North Korea, Albania, Belarus, Cameroon, Chad, Zembabwe
What is a capitalism economy?
Everyone has the right to own, produce, and invest E.G Australia, America, England, China, Germany
The four questions for Production
- 1. What to produce
- 2. Who to produce
- 3. How to produce
- 4. How much to produce