QUESTIONS
1. Free enterprise system is a system where resources are allocated through
,factors of production are
, there is
government interferance and decision making is
, made by
. In
such system people are motivated by
. Example of such economy
can be
.
2. Name and explain 5 economic advantages and five economic disadvantages of a free
enterprise economy.
3. Centrally planned economy is a system where resources are allocated through
, factors of production are
, there is
government interferance,
decision making and people are motivated by
.
4. Name and explain 4 economic advantages and 4 economic disadvantages of a free
enterprise economy.
5. Mixed economy is a system in which elements of both
can be found.
and
6. Why is Ireland considered to be a mixed economy?
7. Is the Irish economy moving towards free enterprise or centrally planned economy?
8. Match characteristecs with corresponding type of an economy.
Free enterprise economy
Centrally planned economy
Mixed economy
Incorporates elements of free end centrally
planned economy.
Resources are allocated through planning
mechanism.
There is maximum government interferance in
all aspects of the economy.
All factors of production are privately owned.
Resources are allocated through market
mechanism.
There is existance of semi state and private
enterprise side by side.
All factors of production are owned by the
state.
There is limited government interferance,
government supplies public goods.
Legislation controls the activity of individuals,
eg. Minimum wage law.