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.