Factors of Production
This factor of production includes forests, minerals, and water used to make goods.
What is land?
This economic system relies on custom and tradition to answer economic questions.
What is traditional economy?
This principle explains why every choice involves giving something up.
What is scarcity forces tradeoffs
This individual combines land, labor, and capital while taking risks.
Who is an entrepreneur?
Human capital differs from physical capital because it refers to this
What is skills, education, and experience
This system emphasizes individual choice with little government involvement.
What is market economy?
This principle explains why people respond predictably to rewards and punishments.
What are incentives matter?
Productivity is measured by comparing output to this.
What is input?
Oil and coal are examples of this type of natural resource.
What are nonrenewable resources?
This economy blends market freedom with government regulation
What is mixed economy?
This principle focuses on analyzing one additional unit of cost or benefit
What is thinking at the margin?
Training and education that increase worker value are examples of this.
What is human capital?
This factor of production is paid wages for effort and time.
What Labor?
In this system, the government answers all three economic questions.
What is command economy?
This principle explains why specialization and exchange increase efficiency.
What is trade makes people better off?
An increase in output without increasing inputs means this increased.
What is productivity?
Sunlight is an example of this type of natural resource.
What are perpetual resources?
Adam Smith’s invisible hand operates most effectively in this system.
What is a free market economy?
This principle emphasizes long-term effects of present economic choices.
What is future consequences matter?
Machinery and factories are classified as this type of capital.
What is physical capital?
Land, labor, and capital are collectively known by this term.
What are factors of production?
This system theoretically prioritizes equity over freedom.
What is a command economy?
This acronym summarizes the idea that all choices involve costs.
What is TANSTAAFL?
This formula is used to calculate productivity.
What is output ÷ input?