Humanities 10.2 revision set

Economic system

A way of organising the production and distribution of goods and services. All countries use one to ensure the wise distribution of smart resources.

Traditional/subsistence economy

An economic system in which participants produce enough for their own needs through methods such as hunting, farming and gathering. No government involvement or use of money.

Market economy

An economic system in which the factors of production are owned purely by private enterprise (producers). No government influence in the production or distribution of goods/services.

Planned economy

An economic and political system where the government or state predominantly owns the resources and determines what, how and for whom to produce for and distribute to.

Mixed economy

Resources are owned by a mix of government and private enterprise. Both government and private enterprise determine what, how and for whom to produce for and distribute to. Most economies are mixed as no pure planned/market economy exists.

All economic systems must answer three questions

What to produce, how to produce, for whom to produce