IGCSE Economics - Various Economic Systems

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In which system are consumers described as "Sovereign"?
Market
1 of 10
What does consumer sovereignity mean?
Economy is very responsive to chanes in consumer demand
2 of 10
In a market economy, "choice" is offered. What of the following would be an example of an economic choice made by a consumer?
Who to work for?
3 of 10
Inwhich system would there be the greatest incentive for workers to work hard, entrapeneurs to start firms with new ideas?
Market
4 of 10
A firm manufacturing cars produces 200 cars each month to meet demand. However, due to pollution caused by the factory, fewer people are willing and able to buy these cars. In which way is the firm contributing to market failure?
Failure to take external costs into account
5 of 10
Is a firm in a planned economy likely to reallocate resources many times during a year to take change in consumer demand into account?
No
6 of 10
To respresent the allocation of resources in a way that maximises consumer satisfaction (allocative effeciency), what graph could I use?
Supply+Demand graph showing variations in quantity
7 of 10
If a firm switches from less productive machines (capital) to more productive workers (labour), are they contributing to market failure?
No (being productively efficient)
8 of 10
To prevent this overproduction/overconsumotion of the product in Q15, governments implement _______ on these products in mixed economies
Taxes
9 of 10
What is a Market Economy also known as?
Fixed economy
10 of 10

Other cards in this set

Card 2

Front

What does consumer sovereignity mean?

Back

Economy is very responsive to chanes in consumer demand

Card 3

Front

In a market economy, "choice" is offered. What of the following would be an example of an economic choice made by a consumer?

Back

Preview of the front of card 3

Card 4

Front

Inwhich system would there be the greatest incentive for workers to work hard, entrapeneurs to start firms with new ideas?

Back

Preview of the front of card 4

Card 5

Front

A firm manufacturing cars produces 200 cars each month to meet demand. However, due to pollution caused by the factory, fewer people are willing and able to buy these cars. In which way is the firm contributing to market failure?

Back

Preview of the front of card 5
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