Economic Systems

Question 1

What is the public sector

Answer 1

The public sector is owned and controlled by the government.

Question 2

What is an economic system?

Answer 2

An economic system is how a country uses its scarce resources to produce goods and services to satisfy needs and wants.

Question 3

What is the private sector?

Answer 3

The private sector consists of private enterprises which produce goods and services to make profit.

Question 4

What is the labour intensive method?

Answer 4

Labour intensive methods of production is when an enterprise uses more labour than capital

Question 5

What is the capital intensive method?

Answer 5

Capital intensive methods of production is when an enterprise uses more capital than labour

Question 6

What is a free market economy?

Answer 6

A free market economy is an economic system where consumers and producers decide on what to produce, how to produce and for whom to produce.

Question 7

What is a mixed economy?

Answer 7

A mixed economy is an economic system in which both the private and public sectors decide what to produce, how to produce and for whom to produce.