About This Chapter
Economic Systems & Structures - Chapter Summary and Learning Objectives
Throughout the different governments around the world, there are a multitude of economic systems and structures in play. This chapter provides an overview of some of the most common systems, including an explanation of their structures and an analysis of their functionality. To judge how well you are learning this information, try taking the quizzes after each lesson. Through completing all the elements of this chapter, you should have a greater understanding of the following:
- The advantages and disadvantages of the free market and capitalism
- A comparative study of mixed economies, communism, and socialism
- The functions and limitations of the command system
|Capitalism and the Free Market: Definition & Limitations||Address and describe the limitations of both the free market and capitalism.|
|Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis||Distinguish the characteristics and practices of these three systems and examine how they each function.|
|Understanding a Command System in Economics||Elaborate on the command system's ability and inability to function, then define the following concepts: adverse selection, incentive problem, moral hazard, and coordination problem.|
1. Economic Systems: Definition, Types & Examples
In this lesson, you'll learn about the three major forms of economic systems, including planned, market, and mixed market economies. You'll also explore the five factors of production and the roles they play in the exchange of products or services.
2. Capitalism and the Free Market: Definition & Limitations
Capitalism is an economic system that has played a dominant part in building the world in which we currently live. In this lesson, you'll learn about some key concepts of capitalism, as well as its limitations.
3. Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis
Socialism and communism are alternative economic systems to capitalism. In this lesson, you'll learn some of the key concepts behind these economic systems. You'll also learn about mixed economic systems.
4. Understanding a Command System in Economics
In this lesson, we'll discuss a command system: one of the often tried, but mostly failed, economic systems of the last century. Because it requires an individual or group to make decisions based on who makes what, there are important challenges of a command system.
5. Production in Traditional, Market, Command & Mixed Economic Systems
This lesson discusses how market, traditional, mixed, and command economic systems operate. The key features, benefits, and drawbacks of each are summarized. Learn how the economic systems answer the three basic economic questions that face all economies.
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Other chapters within the AP Microeconomics: Exam Prep course
- Foundational Economic Concepts
- Supply & Demand in Markets
- Elasticity of Markets in Microeconomics
- Microeconomics & Consumer Behavior
- Production & Costs in Economic Markets
- Firm Behavior & Monopoly in Microeconomics
- Factor Markets in Microeconomics
- Public Goods & Government in Microeconomics
- Public Policy, Government & Microeconomics
- AP Microeconomics Flashcards