Chapter 3.1 Quiz Review

• In economic terms, land, labor, capital and entrepreneurship are called

• Factors of Production

• The organized way a nation provides for the needs and wants of its people

• Economy

• Coal, crude oil, trees and plants, a county’s climate and geography are which factor of production?

• Land

• People who work full and part time in the private and public sector are examples of what factor of production

• Labor

• Money, buildings, equipment, tools and goods used in the production process are what factors of production

• Capital

• The skills of the people who invest their time and money to run a business are what factor of production?

• Entrepreneurship

• Highways, air/water ports, utilities (water, electricity, sewer), communication (phone)

• Infrastructure

• Difference between needs and wants and available resources

• Scarcity

• Businesses decided how products will be produced in this economy

• Market Economy

• Government decides what products to produce in this economy

• Command Economy

• Consumers decide if a business will survive in this economy

• Market Economy

• Forces a nation to make economic choices about how to use its resources

• Scarcity

• In a choice between 2 or more options, this is the benefit that COULD have been received for the choice that was not selected (value of the foregone alternative)

• Opportunity Cost

• All the alternatives in making a decision are called

• Trade-offs

• Type of economy where the government answers all questions of what to produce, how to produce it and who will receive the product

• Command

• Type of economy where the consumer decides what to produce, business decides how to produce goods, and people with money can purchase goods

• Market Economy

• Political/social/economic philosophy where the government owns key industries, medical care and education are free or low cost and businesses and individuals pay higher taxes to pay for services

• Socialism

• Political/social/economic philosophy where property is owned by the community as a whole rather than by individuals. Strives for a classless society

• Communism

• Political/social/economic philosophy that would best describe the United States and Japan. Profit the motive for productivity.

• Capitalism