WorksheetsRole of markets in allocating resources
Total questions: 10
Worksheet time: 10mins
What are the three questions faced by all economies?
what to produce, when to produce and who receives it.
what to produce, how to produce and who receives it
where to produce, when to produce and why to produce
The institutions, organisations and mechanisms that influence economic behaviour and determine how resources are allocated.
Economic system
Capital intensive
Directives
Labour intensive
An economic system where the government makes crucial decisions, land ad capital are state owned and resources are allocated by directives.
Planned Economy
Mixed economy
Market economy
State owned instructions given to state owned enterprise
Directives
Price mechanism
An economy in which both private and public sector play an important role.
Mixed Economic System
Market Economic System
Planned Economic System
An economic system where consumers determine what is produced, resources are allocated by price mechanism, land and capital are privately owned.
Mixed Economic System
Market Economic System
Planned Economic System
______________________ is the way the decisions made by households and firms interact to decide the allocation of resources.
Price mechanism
Directives
Capital intensive
Labour intensive
_____________ is the willingness and ability to buy a product.
Demand
Market equilibrium
Supply
____________________ is the willingness and ability to sell a product.
Supply
Demand
Market equilibrium
Market disequilibrium
Price will rise if demand ___________________.
increases
decreases
stay the same
