Distributing economic resource

• Economic system : the way country decides to use its factors of production to produce and distribute goods and services
• Economy is the production , distribution and consumption of goods and services in a country
• Centrally planned economy or cimmand economg eg Iran ( the goverment of a country makes all the decisions about the production of goods and services
• Free enterprise economy or free market economy is citzens are free to set uo buisnesses in any area with little interference from the goverment
• Mixed economy is a combination olanned and free enterprise economy. Production of goods and services is shared between goverment and buisness this meaning more areas citzens are free to set uo buisnesses to produce goods and services provided they stay within law
• Mixed economy

  Benefits :

  • Wide choices of goods and services
  • Essential services are available to all
  • Public amenities eg parks , street lights privided by goverment
• Irish cinsumers jave huge choices

  Retail : dunnes

  Air travel : ryanair

  Mobile 3 : vodaphone
• Advantages of setting up a buissnes

  1. Anyone can set up
  2. Large skilled workface
  3. Low corparate tax
  4. Good trade links to other countries
• Public sector

  • Part of the economy where the goverment probides services to the cutzens of the country eg. Gardaí , doctor
  • Operates through goverment departments or state-owned companies
• Local authorities and they responsible for providing imoortantservices in their local areas eg.mayo county council
• Local authorities services include

  1. Council houses
  2. Public parks and green areas
  3. Public libaries
  4. Street lightingAnd other essential services
  5. Planning service
• Private sector

  People who are not employes by the state of EG engineers , carpentars , olumbers , accountants
• Voulantary sector

  The voluntary ornnot -for-profit sector cimprises all the charities, social enterprises and cultural enterprises in the country
• Circular flow of income

  Describes how economic resources and income move around the economy