Unit 6 Microeconomics

Someone who buys and uses goods and services

• Consumer

• Producer

• Tax

• Interest

Increased worker productivity leads to more of this for a business owner

• Profit

• Expansion

• Deflation

• Inflation

This means the same thing as capitalism

• Free enterprise

• Interest

• Capitalism

• Factors of production

Land, Labor, Capital, Entrepreneurship

• Capitalism

• Interest

• Factors of Production

• Government Property

Profit is the main incentive for starting a business in a

• Command Economy

• Traditional economy

• Market economy

• Taxes

We study economics because we are trying to solve this problem

• Search for resources

• Scarcity of resources

• Required resources

• Resources

Specialization and Division of Labor lead to increased

• Wall of Separation

• Productivity

• Federalism

• Referendum

How are production decisions made in a command economy?

• Market forces

• Profit incentives

• Centralized planning

• Resource rationing

Which point on the diagram BEST represents an economy based on free enterprise (market economy)?

• Point A

• Point B

• Point C

• Point D

In which system would a government seize a factory and convert it to public (government) ownership for the benefit of all?

• Communism (Command)

• Capitalism (Market)

• Traditional

• Free Enterprise