Download Homework H due 7th November68.5 KB

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Market (economics) wikipedia, lookup

Steady-state economy wikipedia, lookup

Transcript
1.1.6. The Free Market versus Mixed Economies
1. Fill in the missing words. (6 marks)
The test of any economy is the extent to which it solves the basic _____________________ problem. In a free
market, resources are allocated via the ___________________ mechanism. This system of allocation is commonly
referred to as _________________________. In the free market, an increase in demand for a good or service will
cause the price to _________________, encouraging firms to move more resources into the production of this good
or service. In a mixed economy, resources are owned by both households and the ________________. In a mixed
economy, governments can intervene in markets through the use of ______________________.
Choose the right 6 answers from: rise; communism; price; state; fall; economic; taxation; capitalism
2. Data Analysis (4 marks)
A mixed economy is a blend of the free market and the command economy, used extensively by the Soviet bloc
economies during the Cold War. Using the chart above, complete the following diagram by inserting the appropriate
country, based on the information provided in the chart.
3. Explain 2 characteristics of the free market economy: (4 marks)
a) ____________________________________________________________________________________
______________________________________________________________________________________
b) ____________________________________________________________________________________
______________________________________________________________________________________
4. Data Response “The United States is said to have a mixed economy because privately owned businesses and government
both play important roles. Indeed, some of the most enduring debates of American economic history focus on the relative roles of
the public and private sectors.” Source: www.about.com
a. Explain two of the roles held by the public sector (government) in a mixed economy (4 marks)
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
b. One of the key roles held by the government in a mixed economy is to ensure that sufficient competition exists in
markets. Explain two potential advantages of competition within a given market (4 marks)
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________