Economic Systems
Prices are mainly set by supply and demand with limited state control.
What is a free-market economy (capitalist)
Sector that extracts natural resources. (farming, fishing, mining).
The primary sectory
This agent buys goods and services and works to earn income.
United States
Free-market mixed
The state owns key industries and plans output and prices.
What is a planned economy. (command)
Sector that manufactures of transforms raw materials. (factories).
The secondary sector.
This agent makes, sells goods, and hires workers
businesses, companies
Spain
Mixed economy
Most countries have this system combining markets with regulation and public services.
Mixed economy.
Sector that provides services. (healthcare, banking, tourism).
The tertiary sector
This agent collects taxes and pays for schools, hospitals, and roads
The government
Germany
Mixed economy
A government-set maximum legal price on a good. For example, basic foods.
Price cap
Building houses and roads belongs to this sector.
Secondary sector
Taxes
China
State led mixed economy.
When a government owns and runs important services like electricity or railways this is called what kind of ownership?
Public, or state owned
Name the three stages of the economic process in order.
Production, commercialisation, and consumption.
A service like healthcare, education, policing, or street cleaning that is provided for everyone.
A public service
North Korea
Planned or command