stock market

Question 0

Factor Market

Answer 0

Where factors of production are exchanged. (Resource Market)

Question 1

Good Market

Answer 1

Where any goods or service is sold. (Product Market)

Question 2

Circular Flow

Answer 2

How goods, services and money flow through a free market economy

Question 3

5 factors of production

Answer 3

Land- all basic natural resources(bean,store)
Labor- human work/labor(workers)
Physical capital- previously produced goods(coffee machine)
Human capital- education, skills(skills of worker)
Entrepreneurship- managerial ability and risk taker(skills of owner)

Question 4

Economic System

Answer 4

The method used by a society to produce and distribute goods and services

Question 5

All economic must contain these questions

Answer 5

What goods and services to produce?
How will they produce them?
Who will get them?

Question 6

3 basic economic systems

Answer 6

Traditional Economy
Command Economy
Market Economy

Question 7

Traditional Economy

Answer 7

Decisions are made based on customs(traditional way)

Question 8

Command Economy

Answer 8

Government makes all economic decisions

Question 9

Free Market Economy

Answer 9

Economic decisions are made by buyers and sellers

Question 10

Mixed Economy

Answer 10

Combines traditional, market, and command economy systems

Great Britain

Question 11

Features of American free market economy

Answer 11

Economic freedom- individual have the right to choose
Competition- more than one producer of goods/services
Private property- individual have the right to own their own property including business
Self interest- what’s in it for me
Voluntary exchange- individual may freely buy and sell goods
Profit motive- individual are driven by a desire to make money

Question 12

Features of American COMMAND ECONOMY

Answer 12

Government regulation of some business practices(wage, # hours, safety)

Government limits certain choices(can’t buy/produce certain items)

Government provides aid to the need(medical care)

Question 13

Free market

Answer 13

I

Question 14

Command economy

Answer 14

The government

Question 15

Mixed economy

Answer 15

The government and I

Question 16

6 Economic goals of society

Answer 16

Efficiency-using least amount of $ to produce goods/services
Freedom-the liberty individuals have to make economic decisions
Equity-the issue of Fairness in marketplace & in the distribution of $$
Security-protection against economic risks(unemployment, poverty)
Growth-economy must grow in order to improve their standard of living
Environmental quality-concern for a country’s environment and natural resources

Question 17

Absolute advantage

Answer 17

The ability to produce more of given product with same amount of resources

You’re better at it

Question 18

Comparative advantage

Answer 18

Ability of a country to produce a product at a lower opportunity cost than other countries

WHOS GIVING UP LESS! Or who is more efficient

Question 19

How to figure out the opportunity cost and comparative advantage

Answer 19

What you give up / what you get or do= opportunity cost

What you get or do/ what you give up= comparative advantage