Econ Unit 1: Week 2

The factor of production referring to any human-made resource that is used to produce other goods and services.

• Entrepreneurship

• Land

• Labor

• Capital

A market-based economic system in which the government plays a limited role.

Traditional economy

• Traditional economy

• Command economy

• Free-market economy

• Mixed Economy

Using resources in such a way as to maximize the production or output of goods and services.

• Entrepreneurship

• Efficiency

• Underutilization

• Capital

An economic system that relies on habit, customs, and time-honored beliefs.

• Traditional economy

• Command economy

• Free-market economy

• Mixed Economy

The factor of production referring to the effort that a person devotes to a task for which the person is paid.

• Capital

• Land

• Labor

• Entrepreneurship

Using fewer resources than the economy is capable of using.

• Entrepreneurship

• Efficiency

• Underutilization

• Capital

Economic decisions are made by individuals and are based on exchange or trade.

• Traditional economy

• Command economy

• Free-market economy

• Mixed Economy

The factor of production referring to when ambitious leaders decide how to combine the other factors of production to create new goods and services.

• Capital

• Land

• Labor

• Entrepreneurship

The factor of production referring to all natural resources used to produce goods and services.

• Capital

• Land

• Labor

• Entrepreneurship

Economic decisions are made by the central government alone.

• Traditional economy

• Command economy

• Free-market economy

• Mixed economy