Factors of Production
What are the two different types of labor?
Skilled and unskilled labor.
What are the three most common economic systems?
Traditional, Command, and Free Market economies.
Is there a lot of information in free economic systems?
Yes.
What does economic security provide for the economy?
It protects the economy.
What are companies's and businesses' financial incentives?
Profit
What qualifies the factor of land in regard to business?
All resources aiding the business.
What is an example of a traditional economy?
Bartering.
How is the competition in a free economic system?
It is very competitive.
Is there illegal activity in a secure economic system?
No.
What is a corporation?
A publicly traded company.
What are the two different types of capital?
Physical capital & human capital.
What kind of economy is North Korea?
A command economy.
Are there buyers and sellers?
Yes, lots of buyers and sellers.
As a criminal in a secure economic system, what would be your consequence?
Jail - keeps people in line.
What are the advantages of a franchise?
Franchises are well-known, they have the same product, and strong advertising.
Is an auto mechanic a skilled or unskilled laborer?
Skilled laborer.
What rights are you guaranteed in a Free Market Economy?
Private property rights.
What motive from employees helps the business?
Innovation.
As a business in a secure economic system, what happens to your private property if it is robbed?
*You have insurance*
The insurance company provides funds to replace the lost goods.
Advantages and disadvantages of a sole proprietorship?
Advantages: keep profit and you make the decisions.
Disadvantages: help is limited and there is limited money to start.
What mental skill does everyone possess in regard to the factors of production?
Decision-making.
Which economy is the easiest way to trade?
A Free Market economy.
What does innovation drive?
Progress.
As a homeowner in a secure economy, do you have to worry about someone else owning your property?
No, you own your property.
What is the difference between a sole proprietorship and a partnership?
A sole proprietorship is where one person owns the business and a partnership is where the business is owned by more than one person and is not traded with stocks.