Ch 29- Economic Systems-not finished

Question 1

What is an economy?

Answer 1

An economy exists wherever people and businesses engage in producing, selling or buying and consuming goods and services

Question 2

What is the private sector? Give examples

Answer 2

They are not owned by the State and consists of individuals and organisations that are free to set up and run businesses.
e.g. Apple, Red Cross, GAA

Question 3

What is the public sector? Give examples

Answer 3

It refers to organisations owned and controlled by the State, including government departments and State agencies.
e.g. HSE, Garda

Question 4

Name 3 types of economies and countries that have them

Answer 4

-Centrally Planned economy, e.g. Cuba
-Free market economy, e.g. Philippines
-Mixed economy, e.g. Canada

Question 5

What is a centrally planned economy?

Answer 5

When most economic decisions about what to produce, how and for whom are taken by the public sector organisation

Question 6

Advantage of a centrally planned economy?

Answer 6

Public interest- the govt. can provide goods and services that are in public interest, e.g. public transport

Question 7

Disadvantages of a centrally planned economy?

Answer 7

-The govt. chooses the goods they want people to have, but maybe what they need

-Inefficient monopolies- Public sector monopolies may have little incentive to produce the right goods efficiently or for the right people