Flashcards
Economic systems
Cards in this deck (9)
- 1What is a planned economyThere is government control
- 2What is a market economyThere is minimal/no government control
- 3What is a mixed economnyA combination of market and planned economic system
- 4Advantages of a planned economyPrevents wastage (the state will only provide the goods that are necessary), Social equality (everyone can afford), social protection (government rules and regulations are used to minimise pollution etc.)
- 5Disadvantages of a planned economyLack of economic freedom (lack of career choices and shops to buy from), Lack of incentives (since there's no competition, there's no need to make things better or produce more), Bureaucracy (bureaucrats are in charge of making decisions, but they don't take in mind of financial risks)
- 6Advantages of market systemEfficiency (firms are more responsive and dynamic with the competition), Freedom of choice (people can choose which goods and services to buy and have more of a career choice), Incentives (profit motive for firms and wealth for individuals boosts the economic growth and living standards in the country)
- 7Disadvantages of the market systemEnvironmental issues (pollution, climate changes, resource depletion), Income and wealth inequalities (market system is directed to the wealthy), Social hardship (public goods may not be provided e.g. streetlights, pathways), wasteful competition (competition could lead to the use of unnecessary resources)
- 8Advantages of the mixed systemFreedom of choice, follows government rules and regulations, public goods are provided
- 9Disadvantages of mixed systemMore tax (as it comes from your income), inefficient allocation of resources
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- Yr 10 Economics Flashcards on Economic systems, created by Phoebe Ngu on 30/07/2015.
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- Phoebe Ngu
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