Economic Systems Flashcard

Front

What is the structure of methods and principles that a society uses to produce and distribute goods and services?

Back

Economic system

Front

Who is known for the doctrine of Laissez Faire, which advocates for a 'hands off' policy in the marketplace?

Back

Adam Smith

Front

Which economic system relies on habit, custom, or ritual to decide the three key economic questions?

Back

Traditional economy

Front

What is an advantage of a traditional economy?

Back

Everyone knows their role

Front

Which country is an example of a command economy where everything, including media and tourism, is owned by the government?

Back

North Korea

Front

What is a disadvantage of a command economy?

Back

Rewards only productive resources; does not provide for people too old, or too sick to work

Front

Which economic system is primarily based on supply and demand decisions made in the best interests of individuals?

Back

Market economy

Front

What is an advantage of a market economy?

Back

Able to adjust to change gradually

Front

What is the process of selling businesses or services operated by the government to individual investors and then allowing them to compete in the marketplace?

Back

Privatization