economic systems

Question 1

Set of rules that defines how an economies resources are to be owned and how decisions about their use are to be made

Answer 1

overall method of doing business in a country

Question 2

What is to produced

Answer 2

consumer goods
producer goods
military goods

Question 3

the resources that are used to produce goods and services are

Answer 3

labor
land
capital
entrepreneurship

Question 4

non-human resources fixed in supply (gifts of nature)

Includes real estate and natural resources within it

Answer 4

land

Question 5

human effort put to service satisfying human wants (both physical and mental)
work time and effort that people devote to producing goods and services

Answer 5

labor

Question 6

the quality of labor depends on ______, which is the knowledge and skill that people obtain from education, on the job training, and work experience

Answer 6

human capital

Question 7

manufactures goods used in production and marketing of goods are services that are consumed

Answer 7

capital

Question 8

Includes equipment, tools structures, machinery, and skills created to help produce good and services

Answer 8

capital

Question 9

puts other factors together in proper proportions

Answer 9

entrepreneurial ability

Question 10

takes the initiative
makes policy decisions
source of innovations
the risk bearer

Answer 10

entrepreneurial ability

Question 11

Land earns ___

Answer 11

Rent

Question 12

labor earns____

Answer 12

wages and salaries

Question 13

capital earns ___

Answer 13

interest and dividends

Question 14

entrepreneurship earns ____

Answer 14

profit

Question 15

Price paid for use of land

Answer 15

rent

Question 16

price paid for use of labor

Answer 16

wages and salaries

Question 17

cost of financing capital goods

Answer 17

interest and dividends

Question 18

price of successful management

Answer 18

profits

Question 19

three basic types of economic systems

Answer 19

pure capitalism, using marker mechanism
government directed systems
a mixture of both

Question 20

market system
private ownership of resources and use of system of markets and prices to coordinate economic activity
private owners have power to make decisions about their use
each individual acts in his/her own self interest

Answer 20

pure capitalism

Question 21

the use of market prices and sales to signal desired outputs and resource allocations

Answer 21

the market mechanism

Question 22

public ownership of virtually all property resources and economic decision-making through central economic planning

Answer 22

command economy

Question 23

combination of the two— private markets and government involvement

Answer 23

mixed system

Question 24

production methods, exchange of goods and distribution of income are all sanctioned by custom or tradition

Answer 24

traditional economy

Question 25

Markets and prices coordinate economic activity

economy is self-regulating

Answer 25

…

Question 26

characteristics of market system

Answer 26

private property
freedom of enterprise and choice
self-interest
competition
markets and prices coordinate economic activity
limited government

Question 27

people can obtain, control, use and dispose of the property resources they own

Answer 27

private property

Question 28

private individuals can become entrepreneurs (or fail at it)

Answer 28

freedom of enterprise and choice

Question 29

primary, driving force in market system

Answer 29

self interest

Question 30

controlling mechanism of system

Answer 30

competition