Factors of Production
Juan and Tiffany working in Sharon's coffee shop are examples of this factor of production.
What is labor?
According to Smith, the master advances wages and materials because he wants this in return.
What is profit?
Choosing one option over another is called this.
What is a trade-off?
This broad term refers to the way a society answers the questions of what, how, and for whom to produce.
What is an economic system?
This question asks which goods and services should be made.
What is what to produce?
The corner lot Sharon purchased for her coffee shop is this factor of production.
What is land?
In Smith's excerpt, this person demands a share of produce once land becomes private property.
Who is the landlord?
The value of the next best alternative given up when a choice is made.
What is opportunity cost?
An economy based on customs, habits, and traditions.
What is a traditional economy?
This question asks what methods and resources should be used to make goods and services.
What is how to produce?
A coffee grinder, refrigerator, and tables/chairs are examples of this factor of production.
What is capital?
After private property and stock accumulation, the product is divided among these three groups.
Who are landlords, laborers, and masters?
he value of the next best alternative you give up when making a decision.
What is opportunity cost?
An economy in which a central authority makes major economic decisions.
What is a command economy?
This question asks who will receive the goods and services that are produced.
What is for whom to produce?
Sharon deciding to open and organize the coffee shop is this factor of production.
What is entrepreneurship?
Before private property and stock accumulation, this person kept the whole produce of labor.
Who is the laborer?
If you spend $10 on lunch, you cannot spend that same $10 on a movie ticket. This is an example of this economic idea.
What is a trade-off?
An economy with private ownership and little government involvement.
What is a market economy?
If a company designs a product specifically for teens, it is answering this economic question.
What is for whom to produce?
Which item is NOT capital in Sharon's coffee shop: coffee, coffee grinder, tables/chairs, refrigerator?
What is coffee?
The landlord demanding a share of produce represents which factor of production?
What is land?
The basic economic problem that forces people to choose between alternatives because resources are limited.
What is scarcity?
A free enterprise system with some government involvement.
What is a mixed economy?
A lottery system is sometimes preferred over a price system because it gives people this.
What is an equal chance to obtain the item?