distribution of economic resources

Question 1

what are economic systems

Answer 1

the method that a country uses to distribute economic resource and trade goods and services

Question 2

what is a free market economy

Answer 2

citizens are in control of economic resources they are free to set up buisnesses and can decide what goods and services are produced with very little interferance from the government

Question 3

what are three benefits to a free market economy

Answer 3

-wide range of goods and services
-more competition and lower prices
-taxes are lower

Question 4

what are three drawbacks to a free market economy

Answer 4

-less money spent on public services
-social welfare payments are low
-big gap between rich and poor

Question 5

what is a controlled economy

Answer 5

control mainly lies within the government when it comes to distributing econnomic resources and making decisions the goverment decides what is produced

Question 6

what are 2 benefits to a controlled goverment

Answer 6

-lots of public services
-resources are distributed evenly

Question 7

what are 3 drawbacks to a centrally planned economy

Answer 7

-high taxes
-little choice
-high prices

Question 8

whats a mixed economy

Answer 8

the goverment+ private individuals share the production of goods and services individuals can set up buisnesses provided you stay within the law

Question 9

what are 3 benefits to a mixed economy

Answer 9

-wide choice for consumers
-essencial services are available to everyone
-public amenities

Question 10

what are 3 drawbacks for a mixed economy

Answer 10

-limited income for all the public services that need to be produced
-high taxes
-more government regulations

Question 11

what is the private sector of the ecomomy

Answer 11

part of the economy owned and controled by private individulas

Question 12

what is the public sectors oft he economy

Answer 12

part of the economy owned by the goverment

Question 13

what is the third/ voluntary sector of the economy

Answer 13

social cultural enterprises + not for profit orginisations

Question 14

how does the local govermnet [public sector] work

Answer 14

the goverment gives money to each local authority whith is used to provide services in that area

Question 15

how does the goverment departments work [ public sector]

Answer 15

there is 17 departments and each is run by a minister

Question 16

what are state sponcered bodies [public sector]

Answer 16

they are run like buisneses but are run by the state

Question 17

what is a non commercail state sponcered bodies + eg

Answer 17

state sponcered bodies that provide free services eg bord bia

Question 18

what is a commercial sate sponcered body + eg

Answer 18

state sponcerd body that charges for its services rg rte

Question 19

what are charities [voluntary sector]

Answer 19

set up to benefit others by raising money

Question 20

what are social enterprises [voluntary sectors ]

Answer 20

enterprises that have a social or enviromental aim they are run like a buisness but their aim is to benefit the cause not the owners

Question 21

whats a cultural enterprise

Answer 21

set up to promote culture , heritage + the arts most are commercial but some are non profit

Question 22

what is the circular flow of income

Answer 22

the way in which resources and income move around the economy

Question 23

how does the goverment add and reduce the flow of income

Answer 23

• add to the flow by spending on public services
  -reduces it by charging extra taxes

Question 24

how do foreign markets add and reduce the flow of income

Answer 24

• add to the flow through exports
• reduce the flow through imports

Question 25

how do financial institutions add and reduce the flow of income

Answer 25

-they add to the flow by giving loans
-reduce by holding savings accounts