How Economic Systems Attempt To Allocate Resources Effectively

Reviewed by Editorial Team
The ProProfs editorial team is comprised of experienced subject matter experts. They've collectively created over 10,000 quizzes and lessons, serving over 100 million users. Our team includes in-house content moderators and subject matter experts, as well as a global network of rigorously trained contributors. All adhere to our comprehensive editorial guidelines, ensuring the delivery of high-quality content.
Learn about Our Editorial Process
| By Kingfisher007
K
Kingfisher007
Community Contributor
Quizzes Created: 1 | Total Attempts: 222
| Attempts: 222 | Questions: 10
Please wait...
Question 1 / 10
0 %
0/100
Score 0/100
1. In economics we have three main resources that are combined into goods and services, these are;

Explanation

The correct answer is "Human, natural, capital." In economics, these three resources are combined to produce goods and services. Human resources refer to the labor and skills of individuals involved in production. Natural resources are the materials and inputs derived from nature, such as land, water, and minerals. Capital resources are man-made goods used in production, including tools, machinery, and infrastructure. These three resources are essential for the production process and play a crucial role in economic activities.

Submit
Please wait...
About This Quiz
Economic Systems Quizzes & Trivia

In our economic system we have three main resources that are combined into goods and services. In this quiz we will test the users knowledge of the importance... see moreof scarcity of resoures in economics and how effectively the various economic systems attempt to allocate these resources. Knowledge of how different economic systems work will also be tested here. see less

2. A totally  free market is rather hard to achieve, with most governments interfering with the economic structure, what do we call this type of economy, where governments control some of the economy.

Explanation

As mentioned most governments interfere in their counties economy, ie controlling prices of alcohol, imposing trade tariffs on imported goods, and providing free services like hospital and medical services, like the NHS in the UK. This is called a mixed form of economy.

Submit
3. What is the main advantage of a market economy?

Explanation

A market economy can be extremely unfair, producing a rich/poor divide, this was especially true when Margaret Thatcher and Ronald Reagan introduced Neoliberal economics, also known as financial colonialism. It sort to offer large companies in both countries unlimited access to other markets. (Occupy world sreet - Ross Jackson)

Submit
4. There are two main types of ecomonmies, can you name them?

Explanation

The two main types of economy are command and free market economy. A command economy is were supply and price are regulated by government forces. The government decide what goods and services are produced and how they are distributed. The former Soviet Union is an example of command economy. In a free market economy, a price is determined by forces of supply and demand, without outside influence, such as a government. This assumes that markets are efficient, which is not always the case.

Submit
5. A mixed economy would try to privatise some sectors of the public sector, like railways, and telecommunications, is this a good idea and why?

Explanation

In general it is accepted that privatization is a more effective use of resources, however in some cases, the privatization process has not been handled, with resultant fraud, mismanagement, as seen with the failure recently of G4S to provide security to the games.

Submit
6. Mixed economy generally has a large public sector, examples of these are;

Explanation

In most mixed economies, the public sector is a large part of the economy, by public sector, we mean services provided by the government, using funds obtained from taxes. In the Uk a good example would be the NHS.

Submit
7. How can a demand economy be a good idea?

Explanation

A demand economy can ensure the continued use of all available resources and does not suffer from a business cycle. In a demand economy, neither unemployment nor idle production facilities should exist beyond minimal levels. The economy should be unimpeded by inflation or recession.

Submit
8. The primary sector is made up of ;

Explanation

The primary sector are industries that are engaged in production or extraction of natural resources, such as crops, oil and ores.

Submit
9. Is a public sector in a mixed economy a good thing and why?

Explanation

In the UK we have a large public sector which has proved to be a burden on our tax system, UK debt is currently running at 66% (UK National debt). National debt is the money that the government owes the private sector and other purchases of UK guilt's. This is done when public spending is higher than income obtained via taxes which is called a deficit.

Submit
10. The Koyoto agreement which was discussed in 1997 and ratified in 2001 and 2004, is a legally binding agreement between signed up countries to meet emmisions reduction targets of all greenhouse gases by 2012 relative to 1990 levels.This would explain why scarcity of resources is important to our business enviroment. Which resource below is threatening our present day exisitence.

Explanation

The Amazon rain forest is home to many endangered species and animals. The trees create oxygen and photosynthesis. It is the only forest that we have left in terms of size and diversity.The trees take in carbon dioxide and produce oxygen, so without these trees, global warming would increase substantially.We have to protect this natural resource.

Submit
View My Results

Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 17, 2012
    Quiz Created by
    Kingfisher007
Cancel
  • All
    All (10)
  • Unanswered
    Unanswered ()
  • Answered
    Answered ()
In economics we have three main resources that are combined into goods...
A totally  free market is rather hard to achieve, with most...
What is the main advantage of a market economy?
There are two main types of ecomonmies, can you name them?
A mixed economy would try to privatise some sectors of the public...
Mixed economy generally has a large public sector, examples of these...
How can a demand economy be a good idea?
The primary sector is made up of ;
Is a public sector in a mixed economy a good thing and why?
The Koyoto agreement which was discussed in 1997 and ratified in 2001...
Alert!

Advertisement