Chapter 3.1 Quiz Review

In economic terms, land, labor, capital and entrepreneurship are called Factors of Production

The organized way a nation provides for the needs and wants of its people Economy

Coal, crude oil, trees and plants, a county’s climate and geography are which factor of production? Land

People who work full and part time in the private and public sector are examples of what factor of production Labor

Money, buildings, equipment, tools and goods used in the production process are what factors of production Capital

The skills of the people who invest their time and money to run a business are what factor of production? Entrepreneurship

Highways, air/water ports, utilities (water, electricity, sewer), communication (phone) Infrastructure

Difference between needs and wants and available resources Scarcity

Businesses decided how products will be produced in this economy Market Economy

Government decides what products to produce in this economy Command Economy

Consumers decide if a business will survive in this economy Market Economy

Forces a nation to make economic choices about how to use its resources Scarcity

In a choice between 2 or more options, this is the benefit that COULD have been received for the choice that was not selected (value of the foregone alternative) Opportunity Cost

All the alternatives in making a decision are called Trade-offs

Type of economy where the government answers all questions of what to produce, how to produce it and who will receive the product Command

Type of economy where the consumer decides what to produce, business decides how to produce goods, and people with money can purchase goods Market Economy

Political/social/economic philosophy where the government owns key industries, medical care and education are free or low cost and businesses and individuals pay higher taxes to pay for services Socialism

Political/social/economic philosophy where property is owned by the community as a whole rather than by individuals. Strives for a classless society Communism

Political/social/economic philosophy that would best describe the United States and Japan. Profit the motive for productivity. Capitalism