Factors of Production
What factor of production is a company's employees?
Labor
What is equilibrium?
Where supply output meets demand of the consumer.
What type of economy is the U.S.?
Mixed
What does the "Fed" do?
Controls the supply of money
How is economic growth measured?
GDP
What factor of production is a factory building?
What are the 4 levels of competition?
-Perfect Competition
-Monopolistic
-Oligopoly
-Monopoly
What is the highest negative about communism?
-There isn't enough to go around
-Too much central power
-Low freedoms
Free Space
+200
What is does the economy look like when it is in the prosperity stage?
-Low unemployment
-High wages
-Large demand for products
What factor of production is oil?
-Land
+300 points
What is a mixed economic system?
Relies on both independent private ownership but still has government control over some aspects.
What are some ways the U.S. government can cut into the nations debt?
-Spend less
-Increase taxes
-Increase domestic production and shipping
-Tariffs
What are the 3 goals of all economies?
-Growth
-High employment
-Price Stability
T or F:
Money is a form of capital?
False
What is an example of monopolistic competition?
-Fast food
-Pop
-Clothing
What are the 2 examples of a planned economic system?
-Communism
-Socialism
What is contractionary policy? When do we use it?
Used during inflation to tighten the supply of money and increase interest rates.
What are the 4 stages of the business cycle?
-Recession
-Depression
-Prosperity
-Recovery
What are the 4 factors of production?
-Land
-Labor
-Capital
-Entrepreneurship
If there is a shortage in a product, what does that do to supply and demand?
-Supply will decrease, demand will increase, & price will increase
What are some benefits of a free market system?
-Competition
-Better products for consumers
-Those who take risk receive the reward
If the U.S. is in a depression, what steps should the government take to help begin the recovery stage?
-Lessen taxes
-Increase spending and support
What is price stability?
When the average price of a good/service is relatively similar over time.