What are the four types of economies? Describe each one. What ...

[cagreen833]

What are the four types of economies? Describe each one.
 
  What will be an ideal response?

Question 2

The opportunity cost of a decision involves more than the cost in dollars.
 
  a. True
  b. False

[Rilsmarie951]

Answer to Question 1

1  Traditional - primitive societies trade and barter for goods and services.
2 - Market Economy - buyers and sellers interact to determine the value of goods and services.
Price acts a communication factor. Consumers answer the three economic questions.
3 - Command or Planned economy  the government makes all economic decisions, owns and
operates all business and answers all three economic questions.
4  Mixed - contains elements of two or more of the market, traditional, and planned economies.

Answer to Question 2

a