Economics & the Economy

What is an economy?

• A system where the government controls all economic decisions

• A system where individuals and companies make economic decisions

• A system where traditions and rituals answer economic questions

• A system that provides for the needs and wants of a nation's people

What are the four types of resources?

• Land, Capital, Labor, and Entrepreneurship

• Tangible, Intangible, Natural, and Physical

• Coal, Oil, Trees, and Management

• Factories, Equipment, Roads, and Utilities

Which type of economy has no government involvement in economic decisions?

• Traditional

• Market

• Command

• Mixed

In a command economy, who makes all the economic decisions?

• Consumers

• Businesses

• Dictator/Central Government

• People with more money

What is the main characteristic of capitalism?

• Government controls all factors of production

• No private ownership of goods

• Classless society with assigned jobs

• Marketplace competition and private ownership

Which type of economy ensures a certain standard of living and provides social services?

• Traditional

• Market

• Command

• Socialism

The study of how people choose to use their limited resources to satisfy their unlimited wants

• Economics

• Macro economics

• Micro economics

• Incentives

The demand for a good or service is greater than the availability of the good or service

• Supply

• Scarcity

• Incentives

• Tradeoffs

Anything used to produce an economic good or a service

• Normative economics

• Resource

• Supply and Demand

• Positive economics

Economic system that has some combination of traditional, command, and market economies.

• Capitalism

• Traditional Economy

• Mixed Economy

• Market Economy