Economics Slide 1

Question 1

Resource Allocation

Answer 1

Refers to assigning available resources, or factors of production, to specific uses chosen among many possible alternatives, and involves answering the first two basic questions.

Question 2

Underallocation

Answer 2

Too few socially desirable goods or services are being produced

Question 3

Overallocation

Answer 3

Too many goods or services are being produced

Question 4

Reallocation

Answer 4

A decision is made to change the amounts of goods produced

Question 5

Distribution of income

Answer 5

Concerned with how much of an economy’s total income different individuals or different groups in the population receive, and involves offering the third basic economic question.

Question 6

Redistribution of income

Answer 6

Refers to changing the distribution of income, giving rise to a new distributio

Question 7

Criteria for différent economies, Resource Ownership, Economic Decision-making, and Rationing systems

Answer 7

Private vs. Public
Private vs. Public
Price vs. Non-Price Rationing