Four factors
A person who works as a chef in a restaurant is an example of which factor of production?
Labor
In this economic system, decisions are based on customs, beliefs, and habits passed down from generation to generation.
Traditional Economy
What is a producer?
Someone who makes, grows, or supplies goods to sell
These are things that people would like to have, but do not require for survival, such as a video game or a designer hoodie.
Wants
This is the "basic economic problem" that happens because people want more than what is available.
Scarcity
This factor includes all "gifts of nature," such as water, oil, minerals, and the land itself.
Natural Resources (or Land)
This is the most common type of economy today, combining elements of both government control and individual freedom.
Mixed Economy
When the price of a candy bar jumps from $1.00 to $5.00, the demand for that candy bar will usually do this.
Decrease.
These are the basic things a human must have to survive, such as food, water, and shelter.
Needs
Because of scarcity, people, businesses, and governments are forced to make these.
Choices (or Decisions)
Which factor of production is responsible for organizing the other three and taking on the risks of starting a business?
Entrepreneurship
What system is based on customs, beliefs, and the way things have been done for generations.
Traditional Economy
This is the amount of a good or service that consumers are willing and able to buy.
Demand
While a winter coat is a need in a cold climate, a specific brand-name luxury coat would be considered this.
Want
Scarcity exists because human wants are unlimited, but these are limited.
Resources
True or False: Labor includes both the physical work (like lifting boxes) and the mental work (like designing a video game)
True
Also known as capitalism, this system relies on the choices of individual consumers and producers to drive the economy.
Market Economy
Which economic system is driven by "supply and demand," where competition between businesses helps determine prices?
Market Economy
Because resources are limited, people must make these—deciding which needs to meet before spending money on wants.
Choices (or Trade-offs)
True or False: Scarcity only affects poor people and poor countries.
False (Scarcity affects everyone because time and resources are always limited).
In this system, supply and demand (not the government) usually determine what products are sold and at what price.
Market Economy
In this system, the government makes all the major economic decisions, including what to produce and how much to charge.
Command Economy?
If a factory that makes sneakers closes down, the supply of those sneakers will decrease, causing the price to likely do this.
Increase
This economic term describes the gap between our unlimited wants and our limited resources.
Scarcity
To deal with scarcity, a store might do this to the price of a very rare item to control how many people buy it.
Raise the price or Increase