SCARCITY
Limited resources is also known as
Scarcity
A machinery is an example of which factor of production?
Capital
_____ is the pleasure you gain from consuming a product or service
Benefit
True or False, Circular system is a type of economic system
False
True or False, public goods are shared by everyone in society. Nobody can be excluded.
True
Making a decision between two or more alternatives is known as
Choice
What are the 4 main factors of production?
Land, labour, capital, entrepreneurship
_____ the price for consuming a product or service. Opposite of benefit.
Cost
What are the four main economic systems?
Traditional, Command, Market, Mixed
State 2 roles of the government in economic systems
Protecting property rights
Providing public goods and services
Redistributing income
Promoting competition
Resolving market failures
Effects of regulation and deregulation
Resources
This factor of production is also known as natural resources
Land
Marginal benefits is greater than the marginal cost, the individual made a ________ decision
Rational
Who answers the question of what goods to produce in a command economy?
Government
_____a group of people such as families, that live together and purchase many goods to be shared by everyone in the group. They contribute to the circular flow of income by providing the factors of production.
Households
Every time people make a choice about how to use their resources, they must make a ______
Trade-off
This factor of production refers to the mental and physical efforts of human workers
Labour
The additional cost of making a choice is called
Marginal cost
What are the three questions every economy answers?
What to produce?
How to produce?
For whom to produce?
____produces goods and services. They also contribute to the circular flow of income by paying wages to individuals.
Businesses
The cost of the thing you give up is called
Opportunity cost
A person who has to come up with the ideas to start a business and uses his skills to manage the business effectively is called an
Entrepreneur
The additional pleasure that an individual derives from consuming a product or service is called
Marginal benefit
In this type of economic system, prices are determined by demand and supply
_____ is when a private company benefits from production for which people end up paying some of the costs example when a business benefits from a factory which is polluting the air and people nearby suffers the consequences.
Market failure