Economic systems
- Created by: Ben_95
- Created on: 10-04-14 14:40
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Economic system = the way in which production is organised in a country or group of countries.
There are three main types of economic system:
1. Market economy = an economic system whereby resources are allocated through the market forces of demand and supply.
- Resources are allocated by the forces of demand and supply through the price mechanism.
- The government has little or no diect involvement in this process.
- Households and firms act as the buyers…
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