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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. (i) Explain each of the underlined terms. (ii) State one other... 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
Centrally Planned Economic System: In a centrally planned economic system, economic decisions and the allocation of resources are primarily made by the government. The state owns and controls the means of production, determining what, how, and for whom goods and services are produced. This system is characterized by the absence of a market-driven economy.
Mixed Economic System: A mixed economic system incorporates elements of both centrally planned and market economies. It allows for a degree of private enterprise alongside government intervention. This system provides a balance where both public and private sectors coexist, optimizing resource allocation while seeking to meet public welfare objectives.
Step 2
Step 3
Outline one possible economic advantage for Chinese citizens of this change towards a mixed economic system.
Answer
One possible advantage is that citizens may experience increased individual choice. With a mixed economic system, individuals have a greater opportunity to choose from a variety of goods and services based on preference, which can lead to improved overall satisfaction and quality of life.
Step 4
Explain the underlined term.
Answer
Economic Growth: Economic growth refers to the increase in the output of goods and services in a country over a specific period, typically measured by the rise in Gross National Product (GNP) or Gross Domestic Product (GDP). It reflects a nation’s ability to produce more and enhance the wealth and welfare of its citizens.
Step 5
Outline two other economic difficulties which LDCs may experience.
Answer
- High population growth rates: Rapid population growth can strain resources, making it difficult for LDCs to improve living standards and provide adequate services.
- Famine in LDCs / low life expectancy: Food scarcity and poor health services contribute to low life expectancy, impacting 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 / buy Fair Trade products: Purchasing fair trade products supports sustainable development and provides fair compensation to producers in LDCs, contributing to overall economic improvement.
- Volunteer to work in an LDC: Irish citizens can offer their skills and knowledge through volunteer work, enhancing education and resource access in LDCs.
Step 7
Step 8
Outline one benefit of economic growth to each of the following in the Irish economy: Irish citizens;
Answer
Irish citizens: Economic growth often leads to increased employment opportunities. As businesses expand, they require more workers, which can help reduce unemployment and improve job security.
Step 9
Outline one benefit of economic growth to each of the following in the Irish economy: Retailers;
Answer
Retailers: Increased sales can lead to higher profits. As consumer spending increases during periods of economic growth, retailers benefit from greater sales volumes, enhancing their profitability.
Step 10
Outline one benefit of economic growth to each of the following in the Irish economy: Government finances.
Answer
Government finances: Economic growth can lead to increased tax revenues. As individuals and businesses earn more, the government collects more in taxes, which can be used for public services and infrastructure improvements.