Economic systems

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Economic systems

economic systems are used for a better allocation of resources

Market: a place of exchanges and allocation of resources occur

Market economy:

Majority of goods are provided by private businesses and relies on the least on public sectors for the provision of goods and services

good and services are freely exchanged and prices are decided by individual suppliers

suppliers bargain for higher offers // buyers more willing to pay less

Mixed economy:

Where public and private sectors both provide goods and services

Planned economy:

Small scale private sectors

lots of government intervention // government makes all economic decisions

most land and capital are owned by government

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