Chapter 6 - economy Flashcards
What are economics
The study of the production, distribution, and consumption of goods and services
What are economic systems
The way a society organizes the production, distribution and consumption of goods and services.
What is scarcity
It’s the idea that land, labor, and capital (money) are limited to what people want or need.
Why r things that ppl want or need limited
Because resources r limited
How great was the demand for super cyborg
The demand for super cyborg city was so great it created a scarcity of the product
What creates scarcity?
Materials found in the natural environment needed to produce goods and services, such as renewable and non-renewable resources
What does labor consist of
Consists of the physical and mental effort needed to produce goods and services
What does the capital consist of
Consists of money that people own or borrow, used to purchase equipment, tools, and other resources needed to produce goods and services
What is a basic way of solving scarcity
An economic system is a basic way of solving scarcity
What r economic systems placed on
Economic systems can be placed on a spectrum; their spot on that spectrum depends on the underlying values of that society
What does the government own
The government owns and manages all the resources
What do private businesses do in market economies
Private businesses manage and sell their own resources
How do businesses succeed in market economies
Businesses succeed if they sell products consumers want, otherwise they fail
Does the government have a roll in a market economy
No, the government does not get involved
What does a mixed economy combine
Combines private ownership and government control
What do individuals and the government decide on in a mixed economy
Individuals and government make decisions about what to produce
