3.2

Question 1

• what levels of government have some control over the economy
• and how (STLAR)

Answer 1

federal, state and local governments have some control over the economy
: through spending, taxation, laws and regulations

Question 2

are world economies more or less likely to be mixed economies

Answer 2

they are more likely

Question 3

-draw diagram (source3.2.1)
-explain how it works

Answer 3

• in a market economy there is a system of exchange between the producers(sellers) consumers(buyers) that forms a circular flow

Question 4

factors of production
(CELL)

Answer 4

capital, enterprise, land and labour

Question 5

land=

Answer 5

-land= raw materials that come from nature

Question 6

-labour=

Answer 6

-labour= human work physical and mental

Question 7

-capital=
(MT)

Answer 7

-capital= things that people have made that are used in the production process
like machinery and tools.
P.S.= money is not capital resource because by itself it doesn’t make anything

Question 8

-enterprise

Answer 8

-enterprise= people called entreprenuers who use (CLL) to produce goods and services.