1. Approaches to economic problem/types of economy
REVIEW1.3
Approaches to economic problem/types of economy

2. MARKET – Where buyers and sellers meet to exchange goods and services - this does not have to mean face to face meeting
MARKET ECONOMY- Where all resources are allocated by private individuals and groups
PLANNED ECONOMY – Where all resources are allocated by the government
MIXED ECONOMY- Where some resources are allocated by the government and other resources by private individuals and groups.

3. THE PUBLIC SECTOR – Organisations controlled by the government, service not profit
The PRIVATE SECTOR – Run by individuals, for profit.

4. Past paper questions 2010 Q1b – (2) & (2) 2011 – Q2c (6)
2013 – Q2bii – (2)

5. REVIEW1.4
Specialisation

6. Specialisation is concentrating on what you are best at.
This applies to individuals, companies and countries as a whole.
Specialisation underpins the economic argument for trade

7. Benefits to firm Benefits to workers
More productive Specialised workers tend to get higher pay
Lower average costs Workers specific skills improve
More motivation from job satisfaction

8. Costs to Firms
Greater cost of training workers
Quality may suffer if workers become bored
Cost to workers
Maybe replaced by machinery
Boredom
Workers skills will suffer if they are only doing one thing

9. Past paper questions
Specimen Paper Q3 (6), Q4 (8)
2013 – 3d (8)