Factors of Production
What are natural recourses?
Raw materials found in nature
Tradition and custom governed decisions found in rural underdeveloped countries.
What is scarcity?
We don't have enough resources of things we would like to have.
What's the difference between a need and a want?
A need is necessary, and a want is something you wish you have
Fill in the blank:
Business ___ wants and needs by goods and services
satisfies
What are capital recourses?
Things used to produce goods/services like buildings, material, and equipment
What is a command economy?
A system in which central authority such as the state makes key economic decisions
What is equillibrium?
Where buyers and sellers agree on a price
What's the difference between a good and a service?
Goods can be physically weighed and measured, and service is a task that people or machines perform
Fill in the blank:
___ recourses can be reduced
Renewable
What are human resources?
Knowledge, efforts, and skills people provide
What is a market economy?
System in which economic decisions are made in the marketplace according to the laws of supply and demand.
What is the law of supply?
If the price is up, supply is up, and if the price is down, supply is down
What is the difference between a surplus and a shortage?
A surplus is a situation where quantity supplied is more than quantity demanded, and a shortage is a situation where quantity supplied is less than quantity demanded
Fill in the blank:
Business provided ___ to make money
What are entrepreneurial resources?
The initiative to improve goods and services or the initiative to create new ones
What is a mixed economy?
A combination of a market and command economy.
What is the law of demand?
If the price is up, demand is down, and if the price id down, demand is up
What's the difference between a private want and a public want?
A private want is an individuals desire, and a public want is widely shared by society
Fill in the blank:
Prices determined by an ___ between a buyer and seller
agreement
What are factors of production
All components necessary to produce a societies goods/services
What are the four economic systems?
Traditional, Command, Mixed, and Market
What is opportunity cost?
What you give up when you make a choice to buy something else
What's the difference between a consumer and a wage earner?
A consumer is a person who selects purchases, uses, or disposes of goods and services. A wage earner is a business.
Fill in the blank:
___ is the economic problem
Scarcity