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Different Economic Systems Flashcards | StudBud

Explore/Different Economic Systems

Different Economic Systems

4 terms·StudBud Administration·103 plays

CIE IGCSE Economics, taken from Susan Grant

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Questions 4

Answers

1
What are the three questions faced by all economies?
where to produce, when to produce and how to produce
Where to produce, how to produce and when to produce
What to produce, when to produce it and who receives it
What to produce, how to produce and who receives it
2
What is an argument for state intervention in an economy?
Encourage the consumption of harmful products
Aid the role of the price mechanism in allocating resources
Prevent private sector firms from overcharging consumers
Make the distribution of income more uneven
3
What is an advantage of market economy?
Consumer sovereignty
Firms having considerable market power
Full employment
An absence of poverty
4
How are resources allocated in a market economy?
By the price mechanism
By directives and the price mechanism
By directives or the price mechanism
By directives