Shanahan Economics Unit
Terms in this set (23)
Who determines the prices of goods and services in a market economy?
Competition between business owners is common in what type of economy?
Most countries in the world have what type of economy?
In a communist economy, who controls the use of resources?
What is another name for "capitalism"?
What is another name for "communism"?
If the supply of a product is high and demand low, what happens to the price of a good?
the price will decrease
trucks, buildings, money, and machinery are what type of productive resource?
the total value of all the goods and services that a country produces in a year
GDP (Gross Domestic Product)
When the supply is low and demand is high, what happens to the price of a good?
the price will increase
In a market economy, what is the level of government involvement?
The government has little involvement and producers and consumers make decisions.
What productive resource involves the talent and skills of people used to produce goods and services?
Why is specialization good for the economy?
Countries can use their resources to specialize and make goods at the lowest cost.
India's GDP per capita and HDI are low. What type of economy do they most likely have?
Trees, water and petroleum are examples of which factor of production?
land or natural resources
A person who has the skills and leadership to start and run a business is called what?
David decided to go to the movies instead of playing video games. What is this an example of?
Which type of economy creates competition between businesses?
According to supply and demand, when will companies produce more of a good?
When they can sell it for a higher price.
What happens in the world, because of scarcity?
Everyone must compete for available resources.
What are the 3 basic economic questions?
What to produce? How to produce? For whom to produce?
Why is competition in the marketplace good for consumers?
Competition creates lower prices and higher quality goods and services.
What are the 4 factors of production?
land, labor, capital, and entrepreneur