Module 1: Economic Systems in Canada and the United States
Section 1: Market and Mixed Economies
Summary: Market Economy (ch 6)
In this lesson you have begun to answer this question: How does a market economy and a mixed economy affect quality of life?
A market economy is an economic system where the government does not intervene but allows individuals to make all economic decisions. It is based on the values of capitalism. The market economy of the United States is based on this economic system. However, the amount of government control and spending will depend on the political ideals of the government in power.
A mixed economy is an economic system that falls in between capitalism and socialism or a market economy and a command economy on the economic continuum. This economic system includes both government control and individual freedom in making economic decisions. Once again, the amount of government control and spending will depend on the government in power.
A market economy is an economic system where the government does not intervene but allows individuals to make all economic decisions. It is based on the values of capitalism. The market economy of the United States is based on this economic system. However, the amount of government control and spending will depend on the political ideals of the government in power.
A mixed economy is an economic system that falls in between capitalism and socialism or a market economy and a command economy on the economic continuum. This economic system includes both government control and individual freedom in making economic decisions. Once again, the amount of government control and spending will depend on the government in power.
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