Economic Systems
- Created by: Jennifer
- Created on: 01-05-11 18:47
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An economic system is the method used by society to deal with production, distribution and consumption.
- Centrally planned, market and mixed.
* Centrally planned economy is a type of economic system where the state owns and allocates resources.
* Market economy is where households own most resources and markets allocate resources.
* Mixed economy has a private and public sector and uses both market forces and state control to allocate scarce resources between alternative users.
Advantages of a market economy.
- Competition gives firms the incentive to produce…
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