Economics

2. are free to decide who they are going to work for
5. In reality, almost every country in the world operates as a economic system
7. The United States, Japan and Singapore are mixed economies but have less government than Norway, Germany or China
11. North Korea is a planned
12. Market occurs when free market activity results in a less than optimum allocation of resources from the point of view of society
13. These are goods that are to society but consumers under-consume them as they do not fully recognise the private or external benefits
14. Factor occurs when it is difficult for factors of production to move or switch between different uses/locations
15. Intervention seeks to income (tax the rich and give to the poor) so as to reduce the impact of poverty

1. In a free market, the determines the most efficient allocation of scarce resources in response to the competing wants and needs in the marketplace
3. mixed economic system is a blend of a market and economy
4. The includes both the private benefit and the external benefit to society
6. occur when there is an external impact on a third party not involved in the economic transaction between the buyer and seller
8. Entrepreneurs maximise
9. falling prices indicate a of resources
10. higher the level of intervention, the more the economy will lean towards operating like a planned economy