2.2 The Role of Markets in Allocating Resources Flashcards
1
Q
Define Resource Allocation
A
The way in which economies decide what goods and services to provide, how to produce them and who to produce them for
2
Q
What are the 3 basic economic questions?
A
What to Produce?
How to Produce?
Whom to Produce for?
3
Q
Define a Market
A
A set of arrangement that brings together all the producers and consumers of a good or service, so they may engage in exchange
