The economic problem, specialisation, exchange, division of labour, PPCs and economic systems.

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  • Created by: Jade
  • Created on: 21-11-12 18:59
What is economics?
The study of how to allocate scarce resources in the most effective way
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What is the economic problem?
How to allocate scarce resources among alternative uses
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The stock of factors of production is?
Factor endowment
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A situation where there are insufficient resources to meet all wants is the definition of ?
Scarcity
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What is opportunity cost?
The next best alternative that is foregone when a choice is made
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The concentration by a worker/s, firm, region or whole economy on a narrow range of goods and services is what?
Specialisation
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The process by which goods and services are traded is what?
Exchange
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What are the benefits of specialisation?
Increase in the output of goods and services, a widening of the range of goods that are available in an economy, exchange between developed and developing economies
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The specialisation of labour where the production process is broken down into separate tasks is?
Division of labour
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Division of labour increases?
Productivity, output per employee
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What is a production possibility curve?
This shows the maximum quantities of different combinations of output of two products, given current resources and state of technology
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An economy with a high level of income per head
Developed economy
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An economy with a low level of income per head
Developing economy
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On a production possibility curve, any point lying inside the PPC is ?
Occurs when there are unemployed resources or when the economy uses resources inefficiently
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Any point lying outside the PPC is?
Unattainable because a country would require an increase in factor resources, efficiency of factor resources or an improvement in technology
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More resources or economic growth and technological change would lead to?
An increase in productive capacity
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What is an economic system?
The way in which production is organised in a country or group of countries
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What is a market economy?
An economic system whereby resources are allocated through the market forces of demand and supply
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What is a command economy?
An economic system whereby the government has a central role in all decisions that are made, responsible for the allocation of resources
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What is a mixed economy?
An economic system in which resources are allocated through a mixture of the market and direct public sector
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Give an example of a market economy
Singapore and the USA
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Give an example of a command economy
Albania and North Korea
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Give an example of a mixed economy
Czech Republic, Hungary, France and the UK
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Other cards in this set

Card 2

Front

What is the economic problem?

Back

How to allocate scarce resources among alternative uses

Card 3

Front

The stock of factors of production is?

Back

Preview of the front of card 3

Card 4

Front

A situation where there are insufficient resources to meet all wants is the definition of ?

Back

Preview of the front of card 4

Card 5

Front

What is opportunity cost?

Back

Preview of the front of card 5
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Comments

izzy

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good quiz, although some questions could have been worded more clearly

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