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The economy in China is changing from a centrally planned economic system to a mixed economic system - Leaving Cert Economics - Question 3 - 2014
Question 3
The economy in China is changing from a centrally planned economic system to a mixed economic system. (a)(i) Explain each of the underlined terms. (ii) State one o... show full transcript
Worked Solution & Example Answer:The economy in China is changing from a centrally planned economic system to a mixed economic system - Leaving Cert Economics - Question 3 - 2014
Step 1
Explain each of the underlined terms.
Answer
A centrally planned economic system is one where the government makes all the decisions regarding the allocation of resources and production. In this system, the government controls industry and determines what to produce, how to produce, and for whom to produce.
A mixed economic system combines elements of both a centrally planned economy and a market economy. It allows for some degree of private enterprise while also enabling the government to regulate and control certain sectors of the economy.
Step 2
Step 3
Outline one possible economic advantage for Chinese citizens of this change towards a mixed economic system.
Answer
One possible economic advantage for Chinese citizens is the increased individual choice and reduced government interference. With a mixed economic system, citizens have more options when it comes to employment and consumption, potentially leading to higher wages and more diverse products in the market.
Step 4
Explain the underlined term.
Answer
Economic growth refers to the increase in the economic output of a country, typically measured by the rise in its Gross National Product (GNP) or Gross Domestic Product (GDP). It indicates a healthy economy, which contributes to improved living standards and better public services.
Step 5
Outline two other economic difficulties which LDCs may experience.
Answer
- High population growth rates in LDCs can strain limited resources, making it difficult to provide adequate services and infrastructure.
- Famine in LDCs may lead to low life expectancy, negatively impacting workforce productivity and economic stability.
Step 6
Outline two measures which Irish citizens could take to help improve the standard of living of citizens in LDCs.
Answer
- Buy goods produced in LDCs or Fair Trade products. This helps ensure that producers in LDCs receive fair compensation and supports local economies.
- Volunteer to work in an LDC to provide necessary services such as teaching or healthcare, directly impacting the welfare of citizens there.
Step 7
Step 8
Outline one benefit of economic growth to each of the following in the Irish economy: Irish citizens.
Answer
Economic growth leads to increased employment opportunities. As businesses grow, they require more staff, thereby reducing unemployment and potentially increasing wages as demand for labor rises.
Step 9
Outline one benefit of economic growth to each of the following in the Irish economy: Retailers.
Answer
Retailers benefit from economic growth due to increased sales and profits. As consumer income rises, people spend more, which allows retailers to expand operations and increase their market presence.
Step 10
Outline one benefit of economic growth to each of the following in the Irish economy: Government finances.
Answer
Economic growth enhances tax revenues. With more people employed and businesses profiting, the government collects more in taxes, allowing it to provide better public services and reduce borrowing.