3.1.2 Resource allocation
0.0(0)
Studied by 0 people0.0(0)
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt PlayCard Sorting
1/9
There's no tags or description
Looks like no tags are added yet.
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No study sessions yet.
10 Terms
1
New cards
What is a market?
place where buyers and sellers interact to set a price, d/s of scarce products
2
New cards
What is price mechanism?
consumers & producers interact to determine price, which determines allocation of resources.
3
New cards
Functions of price
rationing, signaling, incentive
4
New cards
Rationing
Products only for those who can afford it
5
New cards
Signaling
something about the g/s that is important to buyers.
6
New cards
Incentive
A sign for a supplier to provide it, eg price rises.
7
New cards
Product market
final goods/services sold
8
New cards
Factor market
unfinished goods sold
9
New cards
Specialisation
firms focusing on producing one g/s
10
New cards
Division of labour
Separating work into no. of small tasks
Note 
Flashcards (40)