Chapter 2 Economic Resources and Systems

Front

What is an example of capital in an economy?

Back

A steel factory is an example of capital.

Front

In a market economy, who makes economic decisions?

Back

Economic decisions are made by the marketplace.

Front

What type of economy has little to no government role in production?

Back

Market economy.

Front

What are the four types of economic systems?

Back

Traditional, Command, Mixed, & Market.

Front

What do economic systems distribute?

Back

Economic systems distribute resources.

Front

Define 'Natural Resources'.

Back

Natural resources are materials or substances that occur in nature and can be used for economic gain.

Front

What is 'Labor' in economic terms?

Back

Labor refers to the human effort used in the production of goods and services.

Front

What is the role of 'Entrepreneurs' in an economy?

Back

Entrepreneurs are individuals who create and manage businesses, taking on financial risks to do so.

Front

What is a 'Command Economy'?

Back

A command economy is an economic system where the government makes all economic decisions.

Front

What is a 'Mixed Economy'?

Back

A mixed economy combines elements of both market and command economies.