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
