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Economics Resources

Central Economic Problem
 

  • Describe the basis of resource allocation in a planned economy.
  • Explain the relationship between scarcity, choice and opportunity cost.
  • What are the economic characteristics of command and market economics?

  • Is it best to leave the allocation of goods and labour to the price mechanism? 
  • Explain what is meant by a market economy and consider to which it is an accurate description of your country’s economy. 

  • Discuss the economic problems that are likely to occur as a country moves from central planning towards a market economy. 
  • How can economic analysis be used to help attain an efficient allocation of resources in an economy? 

  • Explain what is meant by the problem of scarcity and assess whether the use of economics can solve the problem. 
  • What is meant by the basic economic problem of scarcity? 
  • Using the production possibilities curve and relevant examples, explain the concepts of scarcity, choice and opportunity cost.
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