Lesson 14 Flashcards
1
Q
Rationality
A
acting to maximise utility
2
Q
Intro
A
define key words
summary of overall point
3
Q
Conclusion
A
judgement + summary of points
4
Q
Controlled economy is the same as …
A
planned economy
5
Q
Market economy
A
resources are owned and allocated by private individuals
the gov. has little role to play
6
Q
Centrally planned economy
A
resources are owned and allocated by the gov.
the government has a large role to play
7
Q
3 diff economic systems?
A
market economy
mixed economy
centrally planned / controlled economy
8
Q
In a planned economy, gov. controls the factors of what?
A
the factors of production (land,labour,capital and enterprise)
9
Q
What is the invisible hand?
A
the natural self regulation of markets
from individuals pursuing their own self-interests
leading to an unintended social benefit
