micro chapter 2

Question 1

what is resource allocation

Answer 1

the way in which society’s productive assets are deployed across alternative uses

Question 2

what are the three different economic markets describe them

Answer 2

.Planned/command: government guides resource allocation
.free: allocation of resources is controlled by market forces
Mixed: combination of market forces and government intervention

Question 3

positives of specialisation

Answer 3

.enables better use of resources
.less cost per unit
.more innovation
.better quality

Question 4

what is a market

Answer 4

set of arrangements that allow for trade to take place

Question 5

what is a barter system

Answer 5

an economy without money so that goods and services rely on direct exchange

Question 7

What is joint demand

Answer 7

Demand for a good stemming from another good

Question 8

What is composite demand

Answer 8

Demand for a good with multiple uses

Question 9

What is competitive demand

Answer 9

Demand for goods that are in competition with each other