Competitive Market
- Created by: lizaloo98
- Created on: 06-04-16 13:03
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- Competitive Markets
- The price mechanism
- This is when changes in the demand or supply of a good/service lead to changes in its price and the quantity bought/sold
- Mixed Economy
- An economic system in which resources are allocated through a mixture of the market and direct public sector involvement.
- combination of government intervention and free markets
- Best of both
- Public and private sector
- e.g. UK, France, Hungary, Czech Republic
- Command versus Market Economy
- Disadvantages of free market economy
- Inequalitiy of income due to people being unemployed as they cannot work
- Non-Profitable products like new medicines not being made
- Monopolies
- Advantages of Market economy
- Efficiency: as firms will try to produce more efficiently to allow more demand and therefore more profit
- Enterprise
- As firms will get better rewards with new products due to market forces
- Choice: as new products will be made and demands and supplied
- Disadvantages of free market economy
- Centrally Planned/Command Economy
- An economic system in which most resources are state owned and also allocated centrally.
- e.g. North Korea
- Free Market Economy
- An economic system whereby resources are allocated through the market forces of demand and supply.
- e.g. USA,
- The price mechanism
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