Economics Questions Flashcards
1
Q
What are Factors of Production
A
Land, labor, capital, and entrepreneurs
2
Q
What is capital?
A
Your money
3
Q
What is entrepreneur?
A
Their money
4
Q
Out of factors of production which one can you get for free?
A
Labor
5
Q
What is traditional economy?
A
Customs dictate economic activity. Ex. Tips, bargaining.
6
Q
What is market economy?
A
Buyers + sellers control factors of production. Ex. Ebay
7
Q
What is common economy?
A
Government controls factors of production
8
Q
What is a mixed economy?
A
Government regulates private business. AMERICA IS A MIXED ECONOMY
9
Q
What is opportunity cost?
A
When you make a choice, it’s not the one chosen
10
Q
Scarcity
A
Rare, limited quantity of something
