Economics paper 1 revision

?
Give 3 pros and 3 cons of a free market economy?
Entrepreneurship/ Efficiency/ Choice Inequalities/Non-profitable goods may not be made/Monopolies
1 of 12
Give 3 pros and 3 cons of a command economy?
Maximise welfare/Low unemployment/ Prevents monopolies Poor decision making/ Restricted choice/ Lack of risk taking + efficiency
2 of 12
Give 3 advantages of state provision?
-Increase consumption of merit goods such as education and wealth - Free provision of services can help to reduce inequalities in access - redistribute income
3 of 12
Give 3 disadvantges of state provision?
-Less incentive to operate efficiently due to the absence of the price mechanism - May fail to respond to consumer demands -Other goods cant be supplied
4 of 12
Advantages of tradable pollution permits ( Carbon emmision trading schemes)?
-Reduce pollution by encouraging firms to become more efficient and pollute less. - Firms causing low levels of pollution will benefit as they can sell permits allowing them to invest more and expand. - Governments can use any revenues from fines
5 of 12
Eval points of tradable pollution permits?
Hard + expensive to monitor emmisions/ If emmisions are self regulated, the quoted figures may be incorrect/ Net pollution isnt reduced/ Cheaper to buy more permits/Optimal pollution level difficult to set/ High pollution in specific areas
6 of 12
Give 4 types of government intervention to control mergers and monopolies?
Price regulation/ Profit regulation/ Performance targets/ Quality standards
7 of 12
Gve 4 types of intervention to promote competition and contestability?
Enhancing competition between firms through promotion of small businesses/ Deregulation/ Competitive tendering for government contracts/ Privatisation
8 of 12
Give 2 types of intervention to protect suppliers and employees?
Restrictions on monopsony power of firms/Nationalisation
9 of 12
What is nationalisation?
The process of transforming private assets into public asssets by bringing them under the public ownership of a national government
10 of 12
Give 2 limits to government intervention?
Regulatory capture/ Asymmetric information
11 of 12
Give 4 advantages of privatisation?
Better service for customers/ More consumer choice/ Cheaper prices for customers/ Revenues from selling firms
12 of 12

Other cards in this set

Card 2

Front

Give 3 pros and 3 cons of a command economy?

Back

Maximise welfare/Low unemployment/ Prevents monopolies Poor decision making/ Restricted choice/ Lack of risk taking + efficiency

Card 3

Front

Give 3 advantages of state provision?

Back

Preview of the front of card 3

Card 4

Front

Give 3 disadvantges of state provision?

Back

Preview of the front of card 4

Card 5

Front

Advantages of tradable pollution permits ( Carbon emmision trading schemes)?

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Paper 1 revision resources »