Discributation Of Ecinomic Resources Flashcards
What is an economy
An economy is the way in which goods and services are made, sold or used in a country or area.
Types Economic Systems
There are three types of economic systems:
1. Centrally Planned Economy e.g Cuba
2. Free Market Economy e.g USA
3. Mixed Economy e.g Ireland
What does the economic system deal with?
An economic system deals with:
1. Sharing of scarce resources
2. Production of goods and services
3. Distribution of goods and services
4. The role of government and non-government sectors of the economy.
Centrally planned economy
A centrally planned economy is one where the government makes all the decisions about how the economic resources of the country are used.
Free market economy
A free market economy is one where private citizens control resources, own businesses and make all the decisions about how goods and services will be produced.
Mixed economy
mixed economy is one where both the government and private citizens have control over the economic resources
Public sector
● The public sector is the part of the economy that is owned and controlled by the government
● This sector provides essential services to the public e.g health, education
Public sector
The public sector is split into three sections:
1. Local government: provide a range of public services to a local area
2. National government:government departments that provide a range of
services to the country as a whole
3. State-owned organisations: businesses set up by the government.They
can be commercial (a business that charges money for their product or service) or non-commercial (a business that provides services free of charge)
Private sector
● The private sector refers to businesses owned by individuals that produce and sell goods and services with the aim of making a profit
● Example: Ryanair, Penneys, McDonalds
Third sector
● The third sector of the Irish economy is made up of social enterprises and organisations that do not aim to make a profit e.g charities
● This groups work independently of the government and are often referred to as non-governmental organisations (NGOs)
Charities (not for profit)
● Charities are set up to benefit others by raising money through various activities like collections, fundraising events and charity shops
● Charities depend largely on volunteers to help them provide their services
● Examples: Oxfam, Focus Ireland, ISP
Voluntary organisations
● A voluntary organisation provides services for their members
● They raise money by charging a membership fee and by organising fund-
raisers
● Example: St Patricks Donabate GAA Club
What is social enterprise
● Social enterprises have a social or environmental aim
● They are run like a business and aim to make a profit to benefit a specific
cause rather than for the owners
