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COMMAND ECONOMY
MARKET
ECONOMY
MIXED ECONOMY
100
Define command economy
an economy in which production, investment, prices, and incomes are determined centrally by a government. A command system is based on goals passed down from a central ruler or ruling class. In a command economy, the ruling class or government makes all of the economic decisions, such as what goods and services will be produced, how much they should be sold for and how much workers will be paid for producing them.
100

In a market economy, who makes the economic decisions?

Consumers and Producers through market interaction

100

Advantages to a mixed economy a. supply and demand drive decision making b. balance of needs and wants along with some government oversight c. both a and b

c.  a and b

200
In a command economy, how are economic decisions made?
government planning group
200
Define market economy
A market economy is an economy in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.
200

Define mixed ecoonmy

A mixed economy is variously defined as an economic system consisting of a mixture of either markets and economic planning, public ownership and private ownership, or free markets and economic interventionism. an economic system combining private and public enterprise

300

Would an individual trying to start a new business in a command economy be difficult?  (Yes/No)

Yes!

300
What does a market economy produce?
What people want to buy and sell
300
name a country that has a mixed economy
United States☺
400

country with a command economy

The command economy is a key feature of any communist society. Venezuela, Cuba, North Korea and the former Soviet Union are examples of countries that have command economies.

400

A market can accurately be described as A) a place to buy things B) a place to sell things C) the process by which prices adjust to reconcile the allocation of resources D) a place where buyers and sellers meet

(C) the process by which prices adjust to reconcile the allocation of resources

400

In the mixed economy A) economic problems are solved by the government and market B) economic decisions are made by the private sector and free market C) economic allocation is achieved by the invisible hand D) economic questions are solved by government departments

(A) economic problems are solved by the government and market

500
A command economy decides resource allocation by government planning A) TRUE B) FALSE
TRUE
500

Who takes the financial risk in starting a new business in a market economy? A. Consumers B. Government planners C. Individual business owners D. A combination of C and b

C.  Individual business owners