Chapter 3 Terms Flashcards
1
Q
What are the four factors of production?
A
- Natural Resources
- Labor
- Capital
- Entrepreneurship
2
Q
What is considered to be the fifth factor of production?
A
- Information
3
Q
Traditional Economy
A
- A system in which decisions involving the production, distribution, and consumption of goods are based upon custom, heredity, and caste
4
Q
Command Economy or Planned/Directed Economy
A
- 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
5
Q
Free Enterprise Economy
A
- A system in which people are free to make their own economic choices
- AKA: private capitalism or market economy
6
Q
Mixed Economy
A
- When a system combines a good measure of free enterprise in some areas with heavy state regulation in others
7
Q
Natural Resources
A
- Includes land and other raw materials
8
Q
Labor
A
- Any work, whether physical or mental, that contributes to the production of goods and services
9
Q
Subsistence Economy
A
- An economic system that provides barely enough to keep a society alive
10
Q
Private Capitalism
A
- The system in which the majority of a nation’s capital is owned and controlled by private individuals and businesses
11
Q
State Capitalism
A
- A system in which the owner of much of the nation’s capital is a powerful, centralized apparatus called the collectivist state
12
Q
Capitalist
A
- Anyone who owns or producer goods or owns a share of some business that produces goods
13
Q
Entrepreneurship or Management
A
- The intelligent direction and supervision of natural and human economic resources
14
Q
Entrepreneur
A
- A person who undertakes management of economic enterprises on a bold scale, with some danger of losing his investment of money and time
15
Q
E. I. du Pont
A
- One of America’s early “captains of industry”
