The Nature and Purpose of economic activity

HideShow resource information
  • Created by: LShan261
  • Created on: 09-04-15 17:43
What is the central purpose of economic activity?
To provide goods and services to satisfy needs and wants.
1 of 11
What is the basic economic problem?
Infinite wants and limited resources.
2 of 11
What are the 3 basic economic decisions?
-What should be produced? -How should a good be produced? -For whom should a good be produced?
3 of 11
What are the four economic systems?
Subsistence, free market, command and mixed
4 of 11
What type of economy is used by the majority of countries and requires a public and private sector?
A mixed economy
5 of 11
Which two economies is a Mixed economy a combination of?
Free Market and Command
6 of 11
In which economy does the government make all economic decisions and is meant to benefit all citizens of a country?
Command economy
7 of 11
Which economy produces little surplus and has low productivity leading to poor standard of living?
Subsistence economy
8 of 11
In which economy does the price mechanism and level of profitability affect the quantity supplied?
Free Market economy
9 of 11
In a Free Market economy what role does the consumer play?
"sovereign"
10 of 11
What are two methods used for an economy to become mixed?
Privatisation of state industries and the encouragement of foreign investment
11 of 11

Other cards in this set

Card 2

Front

What is the basic economic problem?

Back

Infinite wants and limited resources.

Card 3

Front

What are the 3 basic economic decisions?

Back

Preview of the front of card 3

Card 4

Front

What are the four economic systems?

Back

Preview of the front of card 4

Card 5

Front

What type of economy is used by the majority of countries and requires a public and private sector?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all The Economic Problem resources »