Exam-questions Flashcards
What are the three basic factors of production?
Labor, land, capital
What is the first major decision made in an economy?
What and how much is produced
What is the second major decision made in an economy?
How are goods and services produced?
What is the third major decision made in an economy?
How are goods and services divided?
What influences how a society makes the three basic economic decisions?
The societies goals and values
In this country, who makes the first decision
People who own resources
How has technology affected the economy of the United States?
Has reduced production costs
What type of economy does the government usually own parts of?
Command economy
What type of economy do private individuals own the factors of production?
Market economy
What type of economy do most countries have?
Mixed economy
What type of economy do competition and profit-seeking play a large role in?
Market economy
Limited resources compared to people’s wants are know as what?
Scarcity
What do people looking for a profit hope for?
The cost of production
Traditional economy?
Basic economy decisions
Command economy?
Government controlled
Market economy
Owned by private individuals
Want?
Production?
Distribution?
Consumption?
Supply that you want to buy.
Making the product.
Sold into the grocery store.
Bought by a consumer.
What does it show if a producer makes more shirts to sell at $60 than they did at $30?
The law of supply
How is market price determined?
Law of supply and demand
List examples of how businesses are owned in our economy?
Sole proprietorship, corporations, and partnerships
What is the advantage of a sole proprietorship?
Keeps all profits
Why do corporations sell stock?
Raise large amounts of money
What was the primary cause of the rise of labor unions?
Workers had little power over wages and working conditions
What set the stage for the modern labor unions?
Wagner act and the start of the CIO
What are some examples of service-oriented businesses?
Automobile manufacturer
An agreement about wages and working conditions is part of a process called what?
Collective bargaining
What are some examples of things that labor unions are concerned about improving?
Wages, rights of members, and working conditions
