Chapter 3 Review Flashcards

1
Q

What are the four factors of production?

A

natural resources, labor, capital, entrepreneurship

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2
Q

What term refers to someone who owns producer goods or who owns a share of a business that produces goods?

A

capitalist

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3
Q

What term refers to an individual who risks his time and resources in the attempt to establish an economic enterprise?

A

entrepreneur

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4
Q

Since the Soviet government controlled much of the available resources, the “capitalism” found in the former Soviet Union would be called ___ capitalism.

A

state

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5
Q

What are the three basic components of capitalism?

A

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

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6
Q

As seen in a circular flow model of a free enterprise economy, what are the market’s two components

A

resource market and the product market

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7
Q

A ___ economy is an economic system that provides barely enough to keep a society alive

A

subsistence

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8
Q

Name an energy source that does not generate greenhouse gases but has the disadvantage of significant waste disposal issues

A

nuclear power

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9
Q

productivity

A

a measure of how efficiently resources are employed by the company.

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