Types of Economies
This type of economy has no need for money or any deviation from the past.
A traditional economy.
Out of these 3 countries which is the most market leaning? UK, Germany, and Russia?
The UK
What is an economic continuum used to measure?
The amount of government control/economic freedom a country has.
What are the 3 economic questions all economies must answer?
What will be produced?
How it will be produced?
Who will it be produced for?
This economic system would allow for citizens to own all resources.
A pure market economy.
Which country is the most command leaning of the 3?
The UK, Germany, and Russia.
Russia
What two pure economic types are at the end of the continuum?
Pure Command and Pure Market.
How would a traditional economy answer the 3 basic economic questions.
By following traditions of the past.
This type of economy would have the government owning all the resources.
A pure command economy.
Which country is actively moving to create more marketing leaning economic policies?
The Uk, Germany, or Russia
Germany
What decides where a country falls on the economic continuum?
The amount of economic freedom a country has or doesn't have.
How would a command economy answer the 3 basic economic questions?
By allowing the government to have control and input over the economy.
What is bartering?
Trading without using money
Explain why the history of Russia and Germany would cause them to have less economic freedoms than the United Kingdom.
Germany had to absorb East Germany and Russia was recovering from being a part of the Soviet Union. Both countries had to deal with absorbing or leaving communist governments. This impacts the quickness/ rate at which they can allow citizens to have economic freedom.
What changes to a country could cause a shift on the economic continuum?
The countries government changing would impact their place on the economic continuum.
How would a market economy answer the 3 economic questions?
By following supply and demand.
Why are there no pure command or market economies?
Pure market would not have enough government control and pure command would have too much government control. Either system realistically couldn't work.
What type of economy would a democratic country in Europe have? Why would they have this type?
Mixed Market Leaning, this is because democratic governments are run by citizens and thrive on having personal freedoms. Therefore they would tend to lean more towards market economies because they have the most amount of individual freedom.
Out of Russia, Germany, and The United Kingdom which country would have had the biggest changes in the economic continuum in the past 50 years? Why?
Russia, this is because they were part of a communist super country, the Soviet Union, until 1991. Since then Russia's economy has become more market leaning.
Which economy would allow for the least amount of growth?
Command or Market
Command, due to the amount of government regulation