PPFs + Econmoic Systems

Question 1

PPF

Answer 1

Using all available recourses efficiently

Question 2

What cause a right shift in a PPF (4)

Answer 2

New Natural recourse
Efficiency
Innovation and invention
Labour and Capital increase

Question 3

What causes a left shift in a PPF

Answer 3

Lower productivity
Outward migration
War
Natural disasters

Question 4

What is Arymetric growth caused by

Answer 4

An increase in productivity in one sector of the economy

Question 5

What is GDP

Answer 5

The total value of a countries economy. It stands for gross domestic product.

Question 6

What is an economic system?

Answer 6

A network of organisations used to resolve the problem of what and how is produced and who it’s for

Question 7

Free Market

Answer 7

What: Consumer
How: Producer
For: Those who can afford

Question 8

Features of the free market (2)

Answer 8

• Limited role of the state
• Private sector dominates

Question 9

Command Economy

Answer 9

What: Government
How: Government
For: Everyone

Question 10

Features of a Command Economy (3)

Answer 10

• Most recourses are state owned
• Planning allocates recourses
• Little role of market prices

Question 11

Mixed Economy

Answer 11

What: Government and Consumer
How: Government and Producer
For: Everyone

Question 12

Mixed Economy features (2)

Answer 12

• Mix of state and private ownership
• Government intervention in markets