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Card 6

Front

... of the free market economy: Firms have incentives to be efficient and provide goods and services demanded by consumers, avoids government intervention, profit motive provides incentive to use resources efficiently

Back

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Card 7

Front

... of the free market economy: Public goods are not provided in a free market economy, there is no social security for unemployed or low earners, high prices can be set and exploitation of workers and consumers, and merit goods are under provided

Back

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Card 8

Front

... of command economies: Helps the government to overcome market failure, can prevent abuse of monopoly power, prevent mass unemployment, can produce goods which benefit the whole of society

Back

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Card 9

Front

... of command economies: Government agencies usually have poor information about what to produce, unable to respond to consumer preferences, threat to democracy and liberty

Back

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Card 10

Front

... of mixed economies: Business and industry can be left to private firms, reduction in the amount of government regulation, enable government regulation where there is market failure, taxing or regulation or subsidies set by government

Back

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Card 11

Front

... of mixed economies: It can be difficult to know how much the government should intervene, allowing too much government intervention and allowing too much market forces

Back

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