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Allocative Efficiency
is a mechanism that allows buyers and sellers to exchange a good or service.
Capitalism
is an economic system where supply and demand determine prices.
Government intervention
impacts the invisible hand in the economy but they still have an important role to play in the economy.
Households
spend their wages and profit to purchase the goods and services that the firms supply.
Educational support
in the form of student loans, grants, etc after higher education is completed.
The Mixed Economy
is a blend of government commands and capitalism to address the fundamental economic questions which arise.
Command economy
one which the central government dictates what will or will not be produced.
Circular Flow Diagram
Diagram that shows how households and firms are related by the exchange of resources and products.
Allocative Efficiency
free markets are unaffected by third parties who are uninvolved.
Capitalism
the economic system where supply and demand define the prices.
Command economy
one which the central government dictates what will or will not be produced
Economy dominated by the government
they decide what gets produced, in what quantity, and who is entitled to it
Capitalism
is an economic system where supply and demand determine prices
Allocative Efficiency
is a mechanism that allows buyers and sellers to exchange a good or service
The Mixed Economy
is a blend of government commands and capitalism to address the fundamental economic questions which arise
Capitalism
the economic system where supply and demand define the prices
Allocative Efficiency
free markets are unaffected by third parties who are uninvolved
Circular Flow Diagram
Diagram that shows how households and firms are related by the exchange of resources and products
