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business chapter 34
distribution of economic resources
Question | Answer |
---|---|
what is an economy? | refers to the way in which goods and services are made sold and used |
what is the goal of an economy? | to make the most effective use of available resources |
what is an economic system? | the method by which countries distribute economic resources and trade goods and services |
what are examples of centrally planned economies? | north Korea and Cuba |
what are the three most common resources? | a centrally planned economy a free market economy and a mixed economy |
what is a centrally planned economy | the one where the government has a lot of control over economic resources and decision making |
what is the most extreme example of a centrally planned economy? | communism |
what is a free market economy(capitalist)? | private individuals control resources own businesses and make decisions about what goods and services will be produced |
what is an example of a free market economy(capitalist)? | the U.S.A |
what is a mixed economy? | combines elements of the free market and centrally planned systems |
what are sectors of the economy ? | public sector private sector and third sector |
what is the public sector? | the part of the economy that is owned and controlled by the government |
what are the three examples of a public sector? | national government local government and state-owned businesses |
what do local government/authorities do? | promote the interests of local community |
what do the local government/authorities provide? | housing road maintenance and pollution control |