AQA AS Economics Unit 1 MindMap

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  • Created by: ella
  • Created on: 13-01-13 14:24
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  • 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.


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