Briefly describe the types of economic systems.
There are two dichotomous economic systems taught to all undergraduate students. The first one is the free market system while the second one is the command economy system.
Answer and Explanation:
For a free market economy, property and production is privately owned with prices reflecting that of voluntary exchange between suppliers and buyers.
For a command economy, production is state-owned with prices and quantity produced being decided upon by the government or some other centralized organization.
Most economies in the modern world are mixed economies meaning they take bits and pieces of both the free market system and the command system.
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from Intro to Business: Help and ReviewChapter 3 / Lesson 40