The Mixed Economy Flashcards
What is economy?
A system that attempts to solve the basic economic problem
What is the private sector?
Provision of goods and services by businesses that are owned by individuals or groups of individuals
What is the public sector?
Government organisations that provide goods and services in the economy
What are shareholders?
People or organisations that owns shares in companies
What are dividends?
Part of a companies profit that is divided among the people with shares in the company
What are the different types of ownerships in the private sector?
Sole traders
Partnerships
Companies
What are sole traders?
Where the business is ran and owned by one person
What are partnerships?
Where the business is ran by 2 or more people
What is a company?
Where shareholders own a business, which elect a board of directors to run the company on their behalf
What are the aims of private sector companies?
Survival
Profit maximisation
Growth
Social responsibility
What are the types of ownerships in the public sector?
Central government departments
State owned enterprises
Local authority services
What are examples of central government departments?
The Ministry of defence
The Department of health
What are State owned enterprises?
Companies owned by the government, who selects the people who run the company.
What are the aims of public sector orginisations?
-Improving the quality of services
-Minimising costs
-Allow for social costs and benefits
-Profit
What is a mixed economy?
Economy where goods and services are provided by both the public and private sectors
