Economic systems

HideShow resource information

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


No comments have yet been made

Similar Economics resources:

See all Economics resources »See all The reasons why individuals, organisations and societies having to make choices resources »