Distribution of Economic Resources

• Open Economy


  This is an economy that trades goods and services with other countries.
• Closed Economy


  This is an economy that does not trade with other countries.
• Circular Flow of Income


  This illustrates the movement of economic resources and wealth throughout the economy.
• Social Enterprises


  These are operated in a business like manner but any profits made are used for the benefit of the specific cause they were set up for.
• Voluntary Organisations


  These provide services to their members and raise funds through a membership fee and occasionally fundraising, managed and run by committees.
• Non-for-Profit Organisations


  Charities set up to benefit others by raising funds, through fundraising, holding events or running shops.
• State-Owned Organisations

  Organisations that are established by the Government, can be commercial or non-commercial.
• Third/Voluntary Sector


  The part of the economy that involves organisations that are set up to help a cause e.g. charities, social enterprises, voluntary groups.
• Private Sector


  The part of the economy that involves businesses producing and selling goods and services with the aim of making a profit.
• Public Sector


  The part of the economy that is controlled by the government, providing services that would otherwise not exist.
• Mixed Economy


  Elements of both centrally planned and free market economies are combined, most goods and services are produced by private citizens but in some areas the government retains significant involvement, e.g. security, health and education.
• Free Market Economy (Capitalist Economy)


  The private citizens of the state control the resources, own businesses and decide what goods and services will be produced and distributed. E.g. United States.
• Centrally Planned Economy


  The government decides how economic resources will be allocated and used in the production and distribution of goods and services. E.g. North Korea, Cuba.
• Economic System


  The method a country uses to distribute economic resources and trade goods and services.
• Economy


  A system for producing and distributing goods and services in a country or geographic area.