Economics Exam Study

Not enough resources to satisfy human wants

• Land

• Scarcity

• Capital

• Profit

Resources needed to produce goods and services (land, labor, capital, and entrepreneurship)

• Law of Supply

• Labor

• Factors of Production

• Entrepreneurship

All natural resources used to produce goods and services

• Land

• Labor

• Traditional Economy

• Capital

All human effort used to produce goods and services

• Land

• Labor

• Entrepreneurship

• Supply Curve

Economic system in which goods are produced and distributed based on customs

• Command Economy

• Traditional Economy

• Market Economy

• Communism

Economic system in which the government makes all economic decisions

• Market Economy

• Capitalism

• Command Economy

• Socialism

Economic system in which individual choice and voluntary exchange direct economic decisions

• Socialism

• Market Economy

• Command Economy

• Demand Curve

Economic system based on private ownership of factors of production

• Capitalism

• Communism

• Traditional Economy

• Socialism

Economic system in which the government owns all or some of the factors of production

• Socialism

• Command Economy

• Market Economy

• Labor

Economic system in which the government owns all the factors of production and there is little or no political freedom

• Socialism

• Communism

• Capitalism

• Market Economy