ECONOMIC SYSTEMS

Question 1

What is a economic system?

Answer 1

The manner in which decisions are made with regard to how the factors of production are organised in order to produce and distribute goods and services

Question 2

What are the three economic issues?

Answer 2

What is being produced?
How is production taking place?
FOR WHOM are they being produced?

Question 3

Three basic economic systems

Answer 3

Planned Economic System
Free Market System
Mixed Market System

Question 4

What is a planned economic system?

Answer 4

Economic activities controlled by the government

Question 5

What is being produced?

Answer 5

Only that which the government approves

Question 6

How (quantity) is production taking place ?

Answer 6

The government decides on the quantity of each product ,as well as who produces them there is no choice career wise.

Question 7

For whom is it being produced for?

Answer 7

The government decides who will recieve goods after them taking what they need.

Question 8

Advantages of Planned Economic systems

Answer 8

The government ensures that all citizens have access to basic essential services like healthcare.

Question 9

Disadvantanges of a Planned Economic 1.)

Answer 9

Consumers are very low on the on the list of priorities when it comes to desicions on services t

Question 10

Disadvantage of Planned Economic 2.)

Answer 10

There are limited choices of products

Question 11

Disadvantages of Planned Economic 3.)

Answer 11

Prices are controlled by the government

Question 12

What are the factors of production

Answer 12

Capital, Land, Labour Entrepreneurship

Question 13

What is a Free Market System

Answer 13

economic activities depend on supply and demand

the government doesn’t interfere

Question 14

What is being produced? FMS

Answer 14

all items that are required

Question 15

How is production taking place? FMS

Answer 15

buisnesses compete with each other to make as many products as they need to sell in order

Question 16

for whom is it being produced? FMS

Answer 16

For those who can afford it

Question 17

Advantage of FMS 1.)

Answer 17

people have the opportunity to work hard and become successful

Question 18

Advantage of FMS 2.)

Answer 18

Entrepreneurship is strong because there is a financial reward which ensures competition

Question 19

Advantage FMS 3.)

Answer 19

There is a variety in products and services to choose from

Question 20

Advantage FMS 4.)

Answer 20

Resources are privately owned and therefore people are motivated to use the factors of production effectively

Question 21

Disadvantage FMS 1.)

Answer 21

unfair distribution of wealth