Chapter 2: Economic Resources and Systems Flashcards
1
Q
when demand goes up…
A
price goes up
2
Q
when supply goes down…
A
price goes up
3
Q
scarcity
A
fundamental economic problem, trying to satisfy unlimited wants with limited resources
4
Q
4 Factors of Production
A
Natural, Labor, Capital, Entrepreneurial
5
Q
Natural Resources
A
Land, water, oil, minerals
6
Q
Labor
A
“worker bees”
7
Q
Capital
A
equipment used to make stuff (ovens, refrigerators, etc.)
8
Q
Entrepreneurial
A
people who recognize business opportunities and take a risk to start and operate a business
9
Q
Equilibrium Price
A
the point at which supply and demand meet
10
Q
Command Economy
A
Government decides what, how, and for whom to produce (usually little choice in goods and services) ex. Cuba
11
Q
Market Economy
A
Consumers and businesses decide what, how and for whom to produce ex. United States
