micro chapter 2 Flashcards
1
Q
what is resource allocation
A
the way in which society’s productive assets are deployed across alternative uses
2
Q
what are the three different economic markets describe them
A
.Planned/command: government guides resource allocation
.free: allocation of resources is controlled by market forces
Mixed: combination of market forces and government intervention
3
Q
positives of specialisation
A
.enables better use of resources
.less cost per unit
.more innovation
.better quality
4
Q
what is a market
A
set of arrangements that allow for trade to take place
5
Q
what is a barter system
A
an economy without money so that goods and services rely on direct exchange
6
Q
A
