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CIE Economics - Resource Allocation in different economic systems Flashcards | StudBud
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CIE Economics - Resource Allocation in different economic systems
CIE Economics - Resource Allocation in different economic systems
28 terms
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40 plays
A Level
Flashcards
28 cards
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Questions
28
Answers
1
As supply goes up demand goes ___?
Forward
Down
Sideways
Up
2
An economic system where both market forces and government are involved in resource allocation decisions.
Market
Traditional
Planned
Mixed
3
In an ideal market economy, the characteristic that has the MOST influence on supply and demand is the product's _____.
quality
usefulness to society
price
production cost
4
What role does the government play in a market economy?
Instigator
Regulator
Provider
Leader
5
spot the market failure
monopoly power
wealth inequality
all of the above
inefficient allocation of resources
6
2018 World Bank rating of an upper middle income country?
$8465 to $ 15246
$3996 to $12375
$5706 to $14235
$1026 to $3995
7
What is
actual
Market Failure?
When markets fail to deliver goods and services when needed
Markets focusing on the resale of failed products
When the number of producers are higher then the consumers
Deciding whether or not to provide a particular good
8
What is an example of an emerging economy?
Luxembourg
Australia
Thailand
USA
9
Economic system where decisions are taken through the market mechanism
planned
market
traditional
mixed
10
What is an emerging economy?
one that is developing its systems from a planned to a mixed economy
one that is moving from primary sector to secondary sector
one that is making quick progress towards becoming a high income economy
one that is starting to trade with other countries
11
Privatisation
When government sells their business to private organisations
Government sells their employees to private companies
When companies only allow some private buyers to buy
Making accounts private
12
Which is not an Asian tiger?
India
Hong Kong
Singapore
South Korea
13
What is meant by an Asian Tiger Economy
Import led, high growth economies in Asia
Demand led, stable growth economies in Asia
Supply led, emerging growth economies in Asia
Export led, high growth economies in Asia
14
What is the private sector?
Funded by membership, donations & grants
Owned or controlled by individuals or shareholders
Funded by local government
Funded by central government
15
What is meant by market mechanism?
the way in which the market operates when operating within a country
consumers & firms make resource allocat decisions without Govt intervention
how markets are set up and operated by the government
creation of separate markets to operate within specific types of industry
16
What is the Price Mechanism?
the fact that price has no effect on supply and demand
the way supply effects the price of goods & services
the way demand effects the supply and pricing of goods & services
the way price effects the supply and demand of goods & services
17
Nationalisation is...
The transfer of ownership of firms from the private to the public sector
The sale of a state-owned company to the private sector
Where a private sector business may operate a service on behalf of the govt
Purchasing and manufacturing within the home country
18
Criticism of planned economy is that it puts emphasis on producing capital goods the producing consumer goods because...
The Govt focus is on growth and not current comsumption
There are shortages of many consumer goods
The system of decison making is too centralised
Consumers cannot afford to buy any more consumer goods
19
What is meant by an Economic System?
the way in which prices are determined on a short term basis
The way the country is allowed to operate to meet demand and supply
The way the country is governed by the ruling government
The way in which production is organised and choices made in an economy
20
Public sector....
owned by the governing bodies
owned and operated by the government
all for-profit businesses
owned by the customers
21
In this economic system, government owns all resources and are allocated by a central body.
Planned
Traditional
Market
Mixed
22
Price is determined by supply and demand
False
True
23
What is market failure?
Allocation of goods and services is efficient
Resources are scarce
The amount of a good available
Allocation of goods and services is inefficient
24
What's the most likely consequence of a change from a planned to a mixed economy in the composition of what it produces?
Increase in structural unemployment
Increase in the growth rate of the economy
Increase in food prices
Increase in imports
25
Which of these is the most likely outcome when a mixed economy privatises its rail services
Train fares wil now be determined by supply and demand
Off peak train fares will decrease
Fewer rail services will be provided
Peak train fares will decrease
26
Which term describes a country where Govt planning, regulations and directives are responsible for resource allocation
Planned
Capitalist
Mixed
Market
27
A mixed economy can best be described as one in which
Production is determined by the central Govt and market mechanism
Production is determined by entrepreneurs
Consumer goods and capital goods are produced
Agricultural and manufactured goods are produced
28
A reduction in the proportion of household income being saved when a planned economy changed to a more market economy is
Because new charges were introduced for secondary educaiton
Because Households were more concerned about the economy's future prospects
Because Household incomes fell
Because more big ticket goods had become available
