Chapter 3 Review Flashcards
What are the four factors of production?
natural resources, labor, capital, entrepreneurship
What term refers to someone who owns producer goods or who owns a share of a business that produces goods?
capitalist
What term refers to an individual who risks his time and resources in the attempt to establish an economic enterprise?
entrepreneur
Since the Soviet government controlled much of the available resources, the “capitalism” found in the former Soviet Union would be called ___ capitalism.
state
What are the three basic components of capitalism?
property rights, freedom of enterprise and competition in a market environment, and unlimited government
As seen in a circular flow model of a free enterprise economy, what are the market’s two components
resource market and the product market
A ___ economy is an economic system that provides barely enough to keep a society alive
subsistence
Name an energy source that does not generate greenhouse gases but has the disadvantage of significant waste disposal issues
nuclear power
productivity
a measure of how efficiently resources are employed by the company.