Market systems

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  • Economic Systems
    • the way in which production is organised in a country/group of countries.
    • The free market system
      • allocation decisions are mostly made by private individuals and firms
      • resources are allocated through forces of supply and demand using the price mechanism. The price mechanism brings together buyers and sellers
    • Command or planned system
      • allocation decisions are made by the government.
      • Resources are allocated by a central planning system i.e NHS.
    • Mixed economy
      • Some allocations are decided by private individuals and some are decided by the govt.
      • Some resources are allocated through the forces of supply and demand and others by a state planning system.


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