Economic Systems and the Role of the Market The choices that are made in an economy are determined by the economic system of a particular country The three main types of economic system are the market economy, the mixed economy, and the command economy The former...
Production possibility curves show how resources should be allocated In an economy, what is produced us determined by the quantity and quality of available resources – factor endowment These factors of production therefore determine an economy’s production...
The Basic Economic Problem The resources available to an economy are known as the factors of production Factors of production are the mean by which an economy produces a whole range of goods and services to meet the needs of its population The four factors of...
Specialisation and Exchange The problem of scarcity can be addressed through specialisation Specialisation is where workers, firms, regions or economies concentrate on a particular task It is trade that allows specialisation to take place, as this allows the...