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5 Cards in this Set
- Front
- Back
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Market Economy Characteristics |
- Private ownership acts on OWN INITIATIVE.- Every person free to choose their PRODUCTION & CONSUMPTION.- PROFIT MOTIVE controls the decisions.- Price mechanism (demand & supply) coordinates ECONOMIC ACTIVITIES.- Activities DECENTRALISED.- COMPETITION is an important feature.- Wealth & spending distributed unevenly. |
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Examples of Market Economy |
Singapore, Australia, USA |
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Centrally Planned Economy Characteristics |
- GOVERNMENT has SOLE OWNERSHIP & CONTROL of resources.- Government uses CENTRAL PLANNING COMMITTEE (control & plan what & how production takes place)- Discouraged from showing INITIATIVE.- ECONOMIC + POLITICAL FREEDOM reduced.- No. of PRODUCTS available more LIMITED.- COMPETITION discourage.- Government FIXES PRICES & takes extra profit.- Workers receive BASICS SALARY to satisfy needs. |
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Social Services |
- Supplied to community, households and individuals.- Promote individual welfare. |
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Social Services Include |
- Education & Training function: aim to increase literacy (eg. schools & universities)- Housing function: Provide housing for needy.- Social Security function: eg. government pensions & disability allowances.- Health function: provides basic health services to community (eg. hospitals & clinics, government spending on HIV & AIDS programmes) |
