Economics EOCT review questions – Flashcards
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What are the three basic questions faced by people who produce products?
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Whom, what, and how to produce
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What is the basic fundamental economic problem facing society?
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Scarcity
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What is a mixed economy?
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Command and Market
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What are the FIVE factors of production?
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Land,labor, entrepreneur, physical capital, human capital
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What is a command economy?
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Government controls everything
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What is a major strength of a mixed economy?
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Safety nets
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What is an advantage of a market economy?
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Economic freedom
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What is an advantage of a command economy?
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Government security
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What is economics the study of?
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Decision making
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Two countries that have an command economy
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North Korea & Cuba
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Good
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Tangible
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Service
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Action performed
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Human Capital
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Learning or training
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Physical Capital
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Used to produce labor
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Disadvantage of a market economy
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No government security
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Disadvantage of command economy
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No economic freedom
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What type of economy does the U.S. have?
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Mixed
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Opportunity Cost-
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Most desirable alternative given up
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What does Capitalism thrive on?
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Competition
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Entrepreneur-
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Business owner in search of profit
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Trade offs
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All possible decisions
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How is land paid for?
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Rent
