Consumed by individuals to satisfy their own needs and wants.
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Planned economy
The government decides on the production of goods and services.
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Free-market economy
the market decides what is being producing based on demand and supply.
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Mixed economy
goods and services generally provided by the market except when the government decided to intervene to prevent market failure e.g. NHS and education
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Economic growth
Increase in the capacity of an economy and enable them to produce more goods and services.
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Causes of an increase in PPF
Higher productivity/efficiency, better management, increase in investment, discovery and extraction of new natural resources, innovation and invention of new products.
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Causes of a decrease in PPF
Natural distasters, war, political instability, disease,outward migration, decline in productivity perhaps created by recession leading to lower investment.
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Productive efficiency
Producing at the minimum average cost producing the maximum possible output from units.
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Allocative efficiency
Resources are being used to produce what consumers want. AR=MC
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Other cards in this set
Card 2
Front
Social science
Back
Study of human society and of individuals relationship in and to society. e.g. economics , business, psychology.
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