Which economic system has a central authority make all of the economic decisions?
Economics 2
| A | B |
|---|---|
| command economy | Economic System in which basic economic decisions are made by a central authority |
| market economy | Economic system in which basic economic decisions are made by people and firms acting in their own best intersts |
| market economy advantage | Relatively small degree of goverment interference |
Who makes the decisions in each economic system?
Producers and consumers make rational decisions about what will satisfy their self-interest and maximize profits, and the market responds accordingly. In a planned economy, the government makes most decisions about what will be produced and what the prices will be, and the market must follow that plan.
What are the characteristics of economic system?
Theoretically, it may refer to an economic system that combines one of three characteristics: public and private ownership of industry, market-based allocation with economic planning, or free markets with state interventionism.
What are the social goals?
Social goals can be described as the goals that connect an individual or group to their immediate world — to make an impact, to create values, to affect lives, to provide or preserve social amenities or infrastructure, to solve social problems, and/or to protect the natural environment.
What is a socio economic goal?
Competing socio-economic goals including: economic freedom, growth, stability, equity, security, productivity, national defense, environmental protection, and educational quality.
What are the five socio economic factors?
Socio-economic factors include occupation, education, income, wealth and where someone lives.
What are the 6 social economic goals?
In this lesson, students learn about broad social goals: economic efficiency, economic equity, economic freedom, economic growth, economic security, and economic stability.