Traditional
When was traditional economy used the most ?
Thousands of years ago.
Who takes decisions in a command economy system ?
A small group of political leaders.
What is an example of a market economy ?
USA, Switzerland, etc...
Why is mixed economy used the most ?
Because it has the best aspects of all three other economies.
What is scarcity ?
The gap/result between the unlimited wants of people and the limited resources.
What is an example of a traditional economy ?
Amazonian tribes in Brazil.
What is an example of a command economy ?
North Korea, Cuba etc...
What is the market economy also known as ?
Free enterprise.
What is an example of a mixed economy ?
France, Japan, Australia, etc...
What is a free good ?
A free good in economics is something that is available in unlimited supply and doesn’t cost anything to use.
What is a traditional economy system ?
A traditional economy is one where families are responsible for the production of the goods and services that they need. This is a decentralized economy where it is everybody for themselves and where you get the rewards that you made for yourself which means that you hae full control over the factors of production.
What is a command economy system ?
In a command economy system, all production decisions are made by a small group of political leaders whose decisions are enforced throughout the entire economy. All factors of productions are owned by the government in this type of economy, therefore the government sets all prices on goods.
What is a market economy system ?
In this type of economy, many individuals make independent production decisions in a free market place.
What is a mixed economy system ?
A mixed economy system is one where the best attributes of the three other economy types are used to make the best economy possible.
What are the rewards for each factor of production ?
Land- Rent
Capital-Interest
Labour-Salary
Enterprise-Profit
Why is a traditional economy good for individuals ?
Because they control every factor of production.
Who sets prices on goods in the command economy ?
The government.
Who takes production decisions in a market economy ?
Individuals.
What aspect of command economy is there in Canada ?
Large amounts of state owned land.
How does population affect an economy ?
The higher the working population, the bigger the output.
Why is traditional economy not used a lot ?
Limited Innovation, Resource Dependence, Social Structure, Subsistence Focus, Cultural Resistance.
In what political system does command economy happen often ?
Communism.
How do the prices change in a market economy ?
Prices rise when there is high demand and low supply, and fall when there is excess supply.
What aspect of traditional economy is there in Canada ?
Growing your own food and bartering.
What are the top 10 economies in the world ? Doesn't matter if they're not in the right order.
USA, China, Germany, India, Japan, France, UK, Italy, Canada, Brazil.