Economic Basics I
These two words describe products people use and things people do.
What are goods & services?
These two words describe the amount of product available to sell and how many people want to buy it.
What are supply & demand?
This economic system is one in which people grow their own food and make their own goods, trade & barter with one another, and where decisions are made by group leaders based on cultural customs.
What is a traditional economy?
This Asian communist country allows some market competition despite government control.
What is China?
A farmer selling milk from dairy cows works in this type of industry that provides raw materials.
What is primary industry?
This is the money that a business uses to buy the items needed for the business to function.
What is financial capital?
This is a system of producing, selling, and buying goods and services.
What is an economy?
This term describes when supply & demand reach a stable price.
What is the equilibrium price?
This economic system is defined by a government deciding what goods to produce, how much to produce, and what prices and wages will be.
What is a command economy?
This Scandinavian country exemplifies a socialist economy.
What is Sweden?
A grocer selling cheese in a market works in this type of industry focused on exchanging goods and services.
What is tertiary industry?
These help determine what will be produced, how it will be produced, and for whom it will be produced.
What are the factors of production?
This occurs because people have unlimited wants despite having limited resources.
What is scarcity?
These are the raw materials and land needed to produce goods
What are natural resources?
This economic system allows individuals or businesses to buy and sell what they wish, and uses supply & demand to determine prices.
What is a market economy?
This Asian island nation has a capitalist economy similar to the United States and Canada.
What is Taiwan?
Cheese makers who use milk to produce cheese work in this type of industry that transforms raw materials.
What is secondary industry?
This kind of mixed economy is similar to capitalism, except the government controls essential industries like healthcare, electricity and communications.
What is socialism?
This is when you make a choice to give up one thing in order to receive another.
What is opportunity cost?
This refers to human time, effort, skills, and talent needed to produce goods.
What is labor?
This kind of mixed economy where individuals/businesses are free to make economic decisions but the government makes regulations and sets taxes to use for economic development.
What is capitalism?
Governments in market/capitalist/socialist can't raise taxes too high because economic growth is driven by this.
What is profit motive drives economic expansion?
Inspectors who examine the quality of cheese work in this type of industry involving research and information distribution.
What is quaternary industry?
This situation occurs when one nation relies on another to provide goods or services the country doesn't produce.
What is economic interdependence?
This incentive describes the desire to have earnings exceed business expenses.
What is a profit motive?
These are items such as tools, machines, factories, and office equipment needed to produce something.
What is capital?
This kind of mixed economy where the government makes all economic decisions, but they also control all the factors of production.
What is communism?
This Caribbean island nation has been subject to a U.S. trade embargo since the early 1960s.
What is Cuba?
This term describes the value of all goods and services produced within a country in a single year.
What is GDP?
The level of economic development for a country can be determined by examining these two factors.
What is the country's GDP and how many people work in each of the economic industries?