Factors of Production
This is a factor of production that includes all the natural resources in and on the Earth
land
In this economy, individuals privately own the factors of production and are free to make decisions about what to produce and what to consume
capitalist or market or free enterprise
What is the difference between a need and a want?
NEED = requirement to survive
WANT = added comfort, not necessary for survival
_______ freedom includes buying (or selling) what you want, choosing your job, your employer and where you live
Economic Freedom
This type of good lasts longer than three years
a durable good
This factor of production includes the people that produce goods and services
Labor
In this economy, the government controls the factors of production and makes decisions about how goods are produced
command economy
Examples of this are land, labor, capital (machines and tools)
A resource
This is when buyers and sellers freely and willingly buy and sell, because they believe what they get is worth more than what they have to give for it
Voluntary Exchange
This is a good intended for final use by individuals, such as shoes, a shirt, or an automobile
consumer good
This factor of production includes manufactured goods, like machines or tools or buildings, used to create other goods and services better and faster
capital
In this economy, economic decisions are based on customs and beliefs that have been handed down from generation to generation
traditional economy
What is the condition that results from a society not having enough resources to satisfy all the wants and needs of that society?
scarcity
This is the right you have to own and control possessions, like a building or land, free from government interference
Private Property Rights
this good is capable of being passed from one person to another, such as land, a building, or books
transferable good
This factor of production refers to the ability of people to start new businesses, introduce new products to the market, with the hope of making a profit
entrepreneurship
An economic system that combines the characteristics of more than one type of economy
mixed economy
The ____ system is used to determine how goods and services are distributed in free market and mixed economies like that of the US and Brazil
the price system
This is the reason why you take a risk to invest your time and money into economic activity that could possible get your more wealth
The Profit Motive
This quality is when a good or service has this, it has the quality of being useful or giving satisfaction
utility
this factor of production describes the use of science to develop new products and new methods of production and distributing goods and services. An example is the Internet.
technology
The way in which a nation uses its resources to satisfy its people’s needs and wants
Economic system
The ____ system is used when the government decides who receives certain goods or services without using prices
Rationing System
this benefits consumers by assuring them that unpopular products will cease to be produced if consumers do not buy them. It also benefits consumers by assuring them that producers are always working to bring newer, better, and less expensive products to market.
Competition
this has value, but is not a physical object and cannot be touched... can be in the form of labor or work examples are entertainment, haircuts, & the gym
intangible / service