Question

Define the following:

1. Allocation of resources
2. Economic system
3. Market economy

Answer 1

1. Allocation of resources is the assignment of available resources to various uses.
2. Economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area.
3. Market economy is an economic system where supply and demand, direct the production of goods and services.

Answer 2

1. Allocation of resources

apportionment of productive assets among different uses.

2. Economic system

by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.

3. Market economy

an economic system where two forces, known as supply and demand, direct the production of goods and services.

eg: US, Japan