AQA AS Economics Unit 1 MindMap
- Created by: ella
- Created on: 13-01-13 14:24
View mindmap
- Prices and Resource Allocation
- FREE-MARKET = All resources allocated by the price mechanism, no government intervention.
- COMMAND = All resources are allocated by the government, no price mechanism.
- MIXED = Some resources are allocated by the price mechanism and some by the government.
- INCENTIVE = Prices create incentives for economic agents so they can achieve full self-interest.
- SIGNALLING = prices signal what's available, so traders can plan and coordinate economic activities.
- ALLOCATIVE / RATIONING = Buyers and sellers must respond to incentives for the marke to operate efficiently. Changing prices of goods and services allocate an ration the economy's scarce resources.
Comments
No comments have yet been made