Factors of Production
What are the three factors of production?
Natural resources, human resources, and capital resources.
All of the following are natural resources except: oil, water, minerals, or labor?
Labor
In decision-making, it is best to _____.
Make thoughtful, objective decisions
What is an opportunity cost?
The best alternative that is given up when making a choice.
What do businesses invest resources and take risks for?
To earn a profit
The people who produce goods and services are called _____ _______.
Human resources
Water is a particularly scarce resource in what part of the US?
Southwest
What is the basic economic problem?
The mismatch of unlimited wants and limited resources
When you give up something to get something else, you are making a...
Trade-off
What happens when businesses offer products and services that consumers want?
They are rewarded with profits.
Capital resources include buildings, equipment, and supplies. Which of the following is not a capital resource: money, buildings, staff, or inventory surpluses?
Staff
What is scarcity?
Limited resources
What is the best way to make decisions in business and economics?
Make decisions based on reasoning, not emotions
In decision-making, what is the best approach?
Make thoughtful, objective decisions.
In a market economy, who owns and controls resources?
The people
What is human capital?
Human capital is the knowledge, skills, and abilities that workers possess.
What is an opportunity cost?
The best alternative you give up when making a decision
What are the three economic questions every society must answer?
What goods to produce, how to produce them, and what needs and wants will be satisfied
What is the basic economic problem caused by the mismatch of unlimited wants and limited resources?
The basic economic problem
What motivates businesses to invest resources?
To earn profit
When you give up something to have something else, you are making a _____ ______.
Trade-off
What is the mismatch of unlimited wants and needs and limited economic resources called?
The basic economic problem
What does a command economy rely on to make decisions?
Government
What is the term for the value of the next best alternative that is given up when making a decision?
Opportunity cost
What do businesses aim to maximize in order to stay competitive in a market economy?
Profit