chapter 3

Question 1

production of goods that result from the combination of certain resources is called

Answer 1

factors of production

Question 2

four main categories in factors of production

Answer 2

natural resources
labor
capital
entrepreneurship

Question 3

what is listed as a fifth factor of production

Answer 3

information

Question 4

what does a countries prosperity depend on

Answer 4

how much freedom the people have to combine their resources

Question 5

a system in which decisions involving the production distribution and consumption of goods are based upon custom, heredity, and caste

Answer 5

traditional economy

Question 6

a system in which a centralized authority determines the production and distribution of goods and services as well as things like savings, investments, and prices

Answer 6

command economy (planned or directed economy)

Question 7

a system in which people are free to make their own economic choices

Answer 7

free enterprise economy

Question 8

result of free enterprise and heavy state regulation

Answer 8

mixed economy

Question 9

includes land and other raw materials

Answer 9

natural resources

Question 10

what can raw materials be derived from

Answer 10

animals and plants

Question 11

refers to any work that contributes to the production of goods and services

Answer 11

labor

Question 12

any good used to produce other goods are called:

Answer 12

capital or producer goods

Question 13

an economic system that provides barely enough to keep a society alive

Answer 13

subsistence economy

Question 14

the system in which the majority of a nation’s capital is owned and controlled by private individuals and businesses

Answer 14

capitalism

Question 15

a system in which the owner of much of the nation’s capital is a powerful, centralized apparatus called the collectivist state

Answer 15

state capitalism

Question 16

anyone who owns producer goods or owns a share of some business that produces goods

Answer 16

a capitalist

Question 17

means tangible producer goods

Answer 17

capital

Question 18

the intelligent direction and supervision of natural and human economic resources

Answer 18

entrepreneurship or management

Question 19

french entrepreneur who was the first to produce quality gunpowder in the U.S

Answer 19

Eleuthere irenee du pont

Question 20

capitalisms three basic components

Answer 20

property rights, freedom of enterprise and competition in a market environment, and limited government

Question 21

who joins together the production factors and makes possible large-scale production and distribution

Answer 21

entrepreneur

Question 22

three types of property

Answer 22

real property, financial property, and intellectual property

Question 23

two market components in a circular flow model

Answer 23

resource market, and produce market

Question 24

two entities that make the majority of economic decisions in the free market

Answer 24

private households and private businesses