Vocab
How much
Quantity
Two examples of people's basic wants
Food and Shelter
Society's goals and values influence how a society makes the three basic economic decisions.
True or False
True
The government of a central authority owns or controls the factors of production and makes the basic economic decisions.
Command Economy
Who is the person who assembles the factors of production to create new goods and services?
Entrepreneur
Anything produced in an economy that is used to produce other goods and services
Capital
Japan cannot grow enough food. This is an example of _____.
Scarcity
An owner of resources decides what and how much to _____.
Produce
A system in which private individuals own the factors of production and are free to make their own choices about production, distribution, and consumption.
Market Economies
A machine used to produce goods and services is considered what from the factors of production?
Capital
The practical application of science to commerce or industry
Technology
To produce goods and services, labor, land, and capital combine in a _____ _____.
Production Process
What are the three major decisions made in an economy?
1 - What and hos much to produce
2 - How to produce goods and services
3 - How goods and services are divided
In a traditional economy, basic economic decisions are made by the elders.
True or False
False
Many wants may occur over and over again.
True or False
True
Process by which goods and services are made available to the people who want them
Distribution
The benefit given up when limited resources are used for one purpose instead of the next best alternative.
Opportunity Cost
How has technology affected the economy of the US?
Technology has reduced production costs
$25 - Price the buyer pays
-$12 - Cost to produce something
_____
$13 - What is this?
Profit
Free enterprise can be seen when government puts price limits on oil.
True or False
False
System in which individuals in a market economy are free to undertake economic activities with little or no government control
Free Enterprise
What are the Factors of Production?
Labor, Land, and Capital
Who developed the moving assembly line to speed up production?
Henry Ford
Most countries in the world today have what type of economy?
Mixed Economy
In capitalism, capital is owned by ?
Private Individuals