1. (a) Explain what is meant by an economy. (b) What three economic questions do all economies have to answer when allocating their resources?
2. (a) What is the difference between the private sector and the public sector?
(b) Identify three businesses or public service organisations owned by the Irish State.
(c) Identify three businesses owned by the private sector in Ireland.
3. (a) Explain, using a simple diagram, what is meant by the circular flow of income.
(b) Explain how the government can increase and decrease the amount of money circulating in an economy.
4. (a) Explain what is meant by a centrally planned economy. (b) Explain what is meant by a free market economy. (c) Explain what is meant by a mixed economy.
Critical Thinking Skills
1. Should schools be financed and run by the public or private sectors? Give two reasons to support your answer.
2. Select a country that you are interested in (other than Ireland). Identify the type of economy this country has (free, centrally planned or mixed). Give reasons for your answer.
