TACN1 Unit 2

Front

What are 3 types of economic system?

Back

1. Free Market Economy 2. Planned Economy 3. Mixed Economy

Front

What is a free market economy?

Back

An economic system where prices are determined by unrestricted competition between privately owned businesses.

Front

What is a planned economy?

Back

An economic system where the government makes all decisions regarding the production and distribution of goods and services.

Front

What is a mixed economy?

Back

An economic system that combines elements of both free market and planned economies.

Front

What is quota?

Back

A limit on the amount of a specific product that can be imported or exported.

Front

What is the role of competition in a free market economy?

Back

To drive innovation and improve quality.

Front

What is the definition of a market economy?

Back

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.

Front

What are the advantages of a mixed economy?

Back

It combines the benefits of both free market and planned economies, allowing for both private enterprise and government intervention.

Front

How does government intervention affect a free market economy?

Back

It can help correct market failures, provide public goods, and regulate monopolies to ensure fair competition.