Contemporary Economics – Chapter 2.1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
what, how, for whom
answer
the three question that all economies must answer
question
economic system
answer
the set of mechanisms and institutions that resolves the what, how, and for whom questions for an economy
question
pure market economy
answer
an economic system with no government involvement so that private firms account for all production
question
pure centrally planned economy
answer
an economic system in which all resources are government-owned and production is coordinated by the central plans of government
question
mixed economy
answer
an economic system that mixes central planning with competitive markets
question
market economy
answer
describes the U.S. economic system, where markets play a relatively large role
question
transitional economy
answer
an economic system in the process of shifting from central planning to competitive markets
question
traditional economy
answer
an economic system shaped largely by custom or religion
