Economic Systems & Opportunity Cost

What is a market economy?

An economic system where supply and demand, driven by private individuals and businesses, determine prices and production

What is a command economy?

An economic system where the government controls production, prices, and resource allocation

What is a mixed economy?

An economic system that combines elements of both market and command economies

What is opportunity cost?

The value of the next best alternative you give up when making a choice

Which type of economic system do Canada and the United States primarily use?

A mixed economy (mostly market-based, with some government regulation and public services)