EM 2

Question 1

free market economy

Answer 1

An economic system in which reousrce allocation is left to the market

Eg nhs and free education

Question 2

Mixed economy

Answer 2

An economic system in which resource allocation is done partly by the government and partly by the interaction of market forces

Eg clothes

Question 3

Planned economy

Answer 3

Where the government is partly responsible for resource allocation rather than market forces

Eg Cuba North Korea

Question 4

CPE which countries are likely to be part of the centrally planed economy ?

Answer 4

New Zealand
North Korea
Norway Denmark

Question 5

FME (free market environment
Country examples

Answer 5

USA
Uk Japan

Question 6

Land

Answer 6

Any natural resource in the ground

Rent

Question 7

Labour

Answer 7

The quantity or quality of human capital input into the production process

Wages

Question 8

Capital

Answer 8

Man’s made aid to production lorries veichles

Intrest

Question 9

Enterprise

Answer 9

When someone is talking the risk in bringing other factors of production together (finanacial risk )

Profit

Question 10

What is a PPF

Answer 10

Illustrates graphically the productive capacity of the economy