Resource Allocation 0.0 / 5 ? EconomicsTopic 2 : Resource AllocationGCSENone Created by: gizmosupremacyCreated on: 16-12-23 15:38 What is a market? where producers (sellers) and consumers (buyers) meet to determine the price of a good or service (bartering) 1 of 8 What are the 3 methods of price-setting? Rationing, signalling, incentive 2 of 8 What determines the prices of goods and services in the product market? The interaction of supply and demand 3 of 8 What is the role of rationing? Allows some people to afford the goods and services, but prevents others 4 of 8 What is the role of signalling? Suggests something important about the goods and services to potential buyers - eg. better quality, higher cost of production 5 of 8 What is the role of incentives? Acts as an incentive for a supplier to produce the good - eg. for a higher profit 6 of 8 What is division of labour? Where workers specialise in one particular task within the production process 7 of 8 What is specialisation? Where a country or business focus on the production of a limited range of products or services in order to gain greater efficiency 8 of 8
Comments
No comments have yet been made