Market systems
- Created by: Itwasntme193
- Created on: 15-10-20 15:13
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- Economic Systems
- the way in which production is organised in a country/group of countries.
- The free market system
- allocation decisions are mostly made by private individuals and firms
- resources are allocated through forces of supply and demand using the price mechanism. The price mechanism brings together buyers and sellers
- Command or planned system
- allocation decisions are made by the government.
- Resources are allocated by a central planning system i.e NHS.
- Mixed economy
- Some allocations are decided by private individuals and some are decided by the govt.
- Some resources are allocated through the forces of supply and demand and others by a state planning system.
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