Market Economy
What determines prices in Market economy?
Supply and Demand.
Who has control over what people buy, sell, and produce?
The government.
How do people get what they need?
They trade.
True or false?
A Market Economy has very low freedom.
False.
True or False?
A Command Economy has low freedom.
True.
True or False?
In a Traditional Economy people do not have a form of currency.
True.
What is a Market Economy?
An economy where consumers determine what to produce with high freedom and privately owned businesses with supply and demand used to set prices.
What is Command Economy?
Command Economy is when the government has full control of the economy including what people buy, sell, and produce. In Command Economy there is very low freedom.
What is Traditional Economy?
Traditional Economy is when people trade for what they need and there is no form of currency.