Flashcards
Markets
Flashcards do conjunto (29)
- 1What is an example of a free market economy?USA
AUSTRALIA
UK - 2What is an example of a command economy?North Korea
China
Russia - 3What type of sector output are command economies based on?public sector output
- 4What type of sector output are free market economies based on?private sector output
- 5What is nationalisation?Resources are transferred from the private sector to the public sector
- 6What is privatisation?Resources transferred from the public sector to the private sector
- 7What is an advantage of a free market economy? (4)1) Competition between firms lead to firms producing as efficiently as possible
2) More choice for consumers
3) Profit rewards those who are successful
4) Goods in demand are produced, goods that are not in demand are not produced (Allocative efficiency) - 8What are the disadvantages of a free market economy? (4)1) Non profitable goods may not be made
2) Income inequality worsens
3) Dominant firms may undermine competition
4) Costs may be cut at the expense of employees - 9What are the advantage of a command economy?1) Maximise welfare- prevent inequality and redistribute income fairly . Ensure the production of goods that people need and are beneficial to society
2) low unemployment
3) Prevent monopolies - 10What are the disadvantages of a command economy? (4)1) A failure on coordination- shortages of some goods and surpluses of others
2) Restricted choice
3) Lack of efficiency- no incentives
4) Emergence of black economy - 11What is a command economy?All resources are controlled by the government, and they decide what is produced
- 12How are command economies run? (2)Planned using input/output tables
Firms are issued with directives of what to produce - 13What does firms being issued with directives of what to produce lead to?No incentive to produce efficiently
- 14What can a command economy often lead to?Result in lots of shortage and surplus
- 15What is a free market economy?All resources are processed through the private sector- there is no public sector
- 16Who controls what is produced in a free market economy?Firms/ entrepreneurs
- 17What does the government provide in a free market economy?Law and Order
- 18How are free market economies run? (3)Profit incentive
Specialisation- technology to improve productivity
Consumers 'vote' for products- producers respond by producing more - 19What does a profit incentive lead to in a free market economy?Goods being produced efficiently- to maximise profits
- 20Who is a free market for?Those with the willingness and ability to pay
- 21What is a mixed economy made up of?Public sector: resources are controlled by the government
Private sector: resources are owned and controlled by individuals - 22How is a mixed economy run?Public sector: planning by government
Private sector: using the free market system - 23Who is a mixed economy for?Public sector: everyone
Private sector: ability to pay - 24What is a market? (2)A key way of allocating resources
Any platform where buyers and sellers come together to exchange goods - 25Who are command economies for?Everybody
- 26How are goods and services distributed in a command economy?By need not ability
- 27Define perfect competitionHigh levels of competition
- 28Define a monopolyLimited competition- a firm with at least 25% market share and the rest with very little
- 29What type of market only has a very few dominant firms which compete?Oligopoly
Informações
- Descrição
- AS - Level Micro (Markets) FlashCards sobre Markets, criado por Maya Khangura em 15-02-2016.
- Criado por
- Maya Khangura
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