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Economics lesson 3 to 4

Quiz yourself by thinking what should be in each of the black spaces below before clicking on it to display the answer.
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Term
Definition
economy   people and firms produce, exchange and consume goods and services in it.  
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economic system   How an economy decides what goods and services to produce, how to produce them and who to produce them for  
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free market economic system   -all decisions are taken by private sector organizations and individuals -no role for government or a public sector and therefore no taxes or public spending. (Laissez Faire=let it be)  
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central planned economic system   -in a planned economy most decisions are taken by public sector organizations. these are organizations owned, controlled and accountable to the government -few private sector businesses in planned economies -very little consumer choice.  
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mixed economic system   -in reality there are no totally free market or planned economies. all economies are mixed to some degree. -ownership of scarce resources and decisions about how to use them are split between the private sector and a public sector  
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wealth   total market value of all physical and intangible assets owned, then subtacting all debts  
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