Introduction

Any point outside the PPC shows ....

• efficiency

• attainable

• scarcity

• unemployment

Any point inside the PPC shows .....

• efficiency

• unattainable point

• scarcity

• waste of resources

Any point on the PPC shows ....

• efficiency

• unattainable point

• scarcity

• unemployment

Choose 2 characteristics for capitalism economy

• Public ownership of resources

• Price mechanism of less importance

• Consumers' sovereignty

• Price system

Choose 2 characteristics of socialism economy

• Private ownership of resources

• Central Planning Authority

• Price mechanism of less importance

• Competition

Which of the following is NOT a merit/advantage for capitalism economy.

• Production according to the needs of consumers

• Efficient utilization of resources

• Greater variety of consumer goods

• No serious unemployment or recession/inflation

Which of the following is NOT a merit/advantage of socialism economy?

• Production according to basic needs

• Automatic incentives

• Equitable distribution of income and wealth

• Social welfare

Choose 3 demerits/disadvantages of capitalism economy.

• Lack of incentives and initiative by individuals

• Lack of social welfare

• Social cost

• Inflation and high unemployment rate

Choose 3 demerits/disadvantages of socialism economy

• Loss of economic freedom and consumer sovereignty

• Absence of competition

• Inequality of distribution of wealth and income

• Waste of economic resources