The basic economic problem - Resource allocation decisions (3)

Resources | Revision Questions | Economics

Login to see all questions

Click on a question to view the answer

1.
(a) Explain why a country might decide to produce more of one type of good or service than another.

(b) Discuss the factors that influence a country's decision about what to produce.
2.
(a) Explain the difference between a planned economy and a market economy in terms of what is produced.

(b) What are the advantages and disadvantages of each system in relation to the decision of what to produce?
3.

The fundamental economic question of 'how to produce' concerns the choices that economies face regarding the methods of production. Discuss how different methods of production can be used by a country to satisfy consumer demand. Consider the advantages and disadvantages of at least three different methods.