L4: Basic Economic Questions

Question 1

Planned vs Market = ?

Answer 1

Decisions

Question 2

Capitalist vs socialist = ?

Answer 2

Ownership

Question 3

How does planned socialism:
Know what to produce and how much to produce

Answer 3

Determined by the Govt. (“Central Planning”)

Question 4

How does planned socialism:
Know how to produce

Answer 4

Determined by the Govt departments

Question 5

How does planned socialism:
Know for whom to produce?

Answer 5

Determined by the Govt departments decide the distribution

Question 6

What is Australians Economy

Answer 6

A Market Capitalist Market

Question 7

Key Beliefs in Australia’s Market Capitalist Economy

Answer 7

• Private Enterprise
• Free Enterprise
• Self-Interest
• Competition/efficiency
• Consumer Sovereignty