Economics
The_________of production include land, labor, capital and entrepreneurs.
Factors
T or F: The circular flow of economic activity describes an economy that is free of markets
False
All of the following are characteristics of market economies EXCEPT:
1. Competition
2. Specialization
3. Individual Freedom
4. Expenditures
4. Expenditures
T or F: Voluntary exchange is a characteristic of command economies
False
The concept of voluntary exchange means
People freely and willingly engage in market transactions
Circular Flow of Economics
The pattern in which goods and services and resources flow in the marketplace
The purpose of government in a command economy is to....
make major economic decisions
Want-Satisfaction Chain
production, distribution, consumption
Example of a Traditional Economy
One disadvantage of a ________economy is the high degree of uncertainty that businesses and workers face as the result of change
Market
An example of a market economy is
United States
Economic growth occurs when a nation's total output of goods and services increases over time
True
A _________________grid can be used to evaluate alternatives
Decision making
Manufactured goods needed to produce other goods and services are called
Capital goods
What are the 8 Characteristics of a Market Economy?
Presence of Markets, Self Interested Behavior, Competition, Limited Government Involvement, Individual Freedom, Voluntary Exchange, Specialization, Strong Property Rights
T or F: The paradox of value occurs when some necessities have little value, while some non-necessities have a much higher value
True
Factors of Production
land, labor, capital, entrepreneurship
What are the three primary economic systems?
Traditional, Market, Command
A rise in the general level of prices is called____________
What is inflation
What are the four basic economic questions?
What to produce, How to produce, For whom to produce, and How much to produce
What is Scarcity?
The limited nature of society's resources
Market-based economic system with limited government involvement
Mixed Economy
the essential resources or factors of production (land, labor, capital, and entrepreneurship) are exchanged for money.
Youth Entrepreneurs Eight Foundational Principles
Responsibility, Integrity, Knowledge, Freedom, Passion, Opportunity, Sound Judgement, Win-Win Focus
What group of people ultimately determines the products that a free enterprise economy produces?
Consumers