13 Marke Economic System

Which term describes the way in which an economy is organised and run?

• planned economy

• mixed economy

• market economy

• economic system

Which economic system relies on the market forces of demand and supply (in the private sector) to allocate resources?

• free market economy

• market economy

• mixed economy

• planned ecnomy

Which economic system relies on the government (in the public sector) to allocate resources?

• free market economy

• market economy

• mixed economy

• planned ecnomy

Which is not a disadvantage of the market economic system?

• environmenta issues

• incentives to work

• income inequalities

• social hardship

Which is a disadvantage of operating in a free maket economic system?

• bureaucracy

• income and wealth inequalities

• lack of economic freedom

• lack of incentives to work