economics deck 1- basics

Question 1

traditional/subsistence economy

Answer 1

is based on customs,traditions and barter ( trading goods and services instead of using money)

Question 2

mixed economy

Answer 2

businesses make most decisions, but the government also has a role in regulating and providing certain goods and services (healthcare,education) (australia)

Question 3

command economy

Answer 3

government controls EVERYTHING (north korea)

Question 4

market economy

Answer 4

business own the resources (land,labour & capital) and they decide what,whom and how to produce. The government has very little control over the economy. its main role is to ensure laws are followed. (copyright,contracts) ( usa)

Question 5

natural resources

Answer 5

resources come from nature. eg, coal that gets extracted from the ground

Question 6

labour resources

Answer 6

physical or intellectual skills needed from someone eg, painter

Question 7

capital resources

Answer 7

made from manufacturing . eg, machines, buildings

Question 8

entrepreneurship

Answer 8

individuals use these resources to make goods and services