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Command Economy
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Market Economy
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Economics Study Tool

QuestionAnswer
Command Economy Government makes all the economic decisions (production, price, etc.)
Market Economy Producers and consumers make all the economic decisions. Desicions are based on supply and demand.
Traditional Economy Economy based on historical practice and time-honored beliefs.
Mixed Economy Some decisions are made by the government, while other decisions are made by producers and consumers.
Human Capital The value of the skills a person possesses.
Voluntary Trade Trade between buyers and sellers without restriction. It's based on their decisions.
International Trade Trade between countries.
Industrialization Development of manufacturing (factories) in a country.
Created by: 832113dr
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