Untitled Flashcards Set

Command Economy

An economic system where economic decisions are made by a central authority or government.

In a command economy, the government regulates and controls production, investment, prices, and income.

Production Control -

Command Economy

An economic system where economic decisions are made by a central authority or government.

In a command economy, the government regulates and controls production, investment, prices, and income.

Production Control -

A primary aim of a command economy is to distribute resources equitably among the population.

Resource Distribution - command

Command economies can lead to inefficiencies and lack of incentives for production.

Inefficiencies in Command Economy - com.

North Korea and the former Soviet Union are examples of command economies.

Examples of Command Economy

Capitalism

An economic system characterized by private ownership of the means of production and the production of goods and services for profit.

Capitalism operates on principles of supply and demand within competitive markets.

Supply and Demand - cap.

Mixed Economies

Capitalism can coexist with varying degrees of government regulation and welfare provisions,

The United States and Canada are examples where capitalist principles drive the economy but with regulations to prevent market failures.

Examples of Capitalism -