3.1.2.1 - Markets and Allocation of Resources

Define ‘Social Sustainability’

The impact of development or growth that promotes an improvement in the quality of life for all / now and into the future /

Define ‘Environmental Sustainability’

Impact of development or growth where the effect on the natural world is small and possible to manage / now and into the future /

Define ‘Economic Sustainability’

The best use of resources in order to create growth or development for a country, firm or individual / now and into the future /

Example of ‘Social Sustainability’

Improving the A66 btw the Scotch Corner and Penrith. Allowing both people and goods to move more freely across the country relieving congestion. It could also boost tourism. OR Healthcare, Affordable housing, Education

Example of ‘Environmental Sustainability’

There is a plan to build a nuclear power station. This would be much cleaner than coal or gas-fired power stations helping reduce climate change.

Example of ‘Economic Sustainability’

The Elizabeth line has been built from Reading to Shefield which created jobs in its construction as well as future jobs in its operation, it reduced unemployment and helped generate more tax revenue for the Government.

Define ‘Market’

when buyers and sellers come together come together to sell and buy goods and services e.g. physical market, an online shop, auctions

Define ‘Mixed Economy’

an economic system in which resources are allocated by both market forces of supply and demand (businesses) and by the government.

Define ‘Market Economy’

This is an economic system where scarce resources are allocated by the market forces of supply and demand.

Define ‘Planned Economy’

when the government controls and decides what is made, how much is made and what prices things are sold for. with very little market forces e.g. China

Define ‘Product Market’

when the final G/S are offered to consumers and businesses and the public sector, interaction of supply and demand to determine price OR the buying and selling of the final goods and services

Define ‘Factor Market’

this is a market where the services of the factors of production are bought and sold (traded). Consider the allocations of land, labour, capital and enterprise OR refers to the buying and selling of the services of the factors of production