2281 · 2.11
Mixed economic system flashcards
Revision flashcards for Cambridge 2281 Mixed economic system (syllabus 2.11). Flip, recall, then mark a real past-paper question.
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What is a mixed economy?
An economic system in which both the private sector (markets) and the public sector (government) allocate resources.
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What is a maximum price?
A legal price ceiling set below the equilibrium price to make a good more affordable; it creates a shortage.
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What is a minimum price?
A legal price floor set above the equilibrium price to protect producers or workers; it creates a surplus.
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What is an indirect tax?
A tax on spending collected from sellers, such as VAT or fuel duty, which raises costs and shifts supply to the left.
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What is a subsidy?
A payment by the government to producers that lowers their costs and shifts supply to the right.
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What is regulation?
Rules and laws that control how markets operate, such as bans, age limits and pollution standards.
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What is direct provision?
The government supplying a good or service itself, paid for from taxation, such as state education or street lighting.
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What is nationalisation?
The transfer of a firm or industry from private to state ownership.
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What is privatisation?
The transfer of a firm or industry from state to private ownership.
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What is a black market?
Illegal trading at prices above a legal maximum price, which arises when a price ceiling creates a shortage.