Distribution Of Economic Resources Flashcards
(13 cards)
What is an economy ?
● An economy is the way in which goods and services are made, sold or
used in a country or area
What is the main aim of an economy ?
● The main aim of an economy is to make the best use of the limited
resources available to them.
What are the three types of economic systems ?
- Centrally planned
- Free market
3 mixed
What is a centrally planned economy
● A centrally planned economy is one where the government makes all the
decisions about how the economic resources of the country are used.
● All businesses are owned and run by the government and the people of the
country are not involved in business ownership.
● Communism is the most extreme example of a centrally planned economy
● Cuba is an example of a centrally planned economy
What is a free market economy ?
● A free market economy is one where private citizens control resources,
own businesses and make all the decisions about how goods and services
will be produced
● The government has little involvement in how the economic resources of
the country are used
● The United States of America is an example of a free economy
What is a mixed economy ?
● A mixed economy is one where both the government and private citizens
have control over the economic resources
● The government control essential services for the people of the country
like education and health
● Private individuals and businesses also produce goods and provide
services to the citizens of the country
● Ireland is an example of a mixed economy
What are the three sectors of the economy ?
Public sector
Private sector
Third sector
What is the public sector ?
● The public sector is the part of the economy that is owned and controlled
by the government
● This sector provides essential services to the public e.g health, education
What is the private sector ?
● The private sector refers to businesses owned by individuals that produce
and sell goods and services with the aim of making a profit
● Example: Ryanair, Penneys, McDonalds
What is the third sector ?
● The third sector of the Irish economy is made up of social enterprises and
organisations that do not aim to make a profit e.g charities
● This groups work independently of the government and are often referred
to as non-governmental organisations (NGOs)
What are charities ?
● Charities are set up to benefit others by raising money through various
activities like collections, fundraising events and charity shops
● Charities depend largely on volunteers to help them provide their services
● Examples: Oxfam, Focus Ireland, ISPCA
What is a voluntary organisation ?
● A voluntary organisation provides services for their members
● They raise money by charging a membership fee and by organising fund-
raisers
● Example: St Patricks Donabate GAA Club
What is a social enterprise ?
● Social enterprises have a social or environmental aim
● They are run like a business and aim to make a profit to benefit a specific
cause rather than for the owners
● Example: Donabate Credit Union
