Economic Vocabulary review

What is the definition of capital?

• The total value of goods and services bought in a year

• An economic system where policies are based on tradition

• Anything that gives a person or business economic value

• A system driven by supply and demand

What are capital goods?

•  Money given to businesses by the government

• Resources, like machines, used to produce other goods and services

• The total amount of human skills and knowledge in a society

• Farms where people grow food for their families

Which economic system is mostly controlled by the government?

• Market economy

• Traditional economy

• Mixed economy

• Command economy

What does an economic system describe?

• How a society organizes and distributes resources, services, and goods

• The ability of individuals to take business risks

• The total value of goods and services bought in a year

• The trade relationships between countries

What is entrepreneurship?

• The ability and willingness of individuals to start businesses or take risks to create new economic opportunities.

• The process of farming for family and community use.

• The study of different types of economies.

• The development of machines for production.

Which term represents the total value of goods and services bought in a year?

• Capital

• GDP

• Human capital

• Market economy

What is human capital?

• The amount of goods and services in a market economy.

• The skills, knowledge, and health of the people in a society.

• The way businesses use money for production.

• The total number of farms in a country.

Which economic system is driven by supply and demand?

• Traditional economy

• Command economy

• Market economy

• Mixed economy

Which economic system combines elements of command, market, and traditional economies?

• Traditional economy

•  Mixed economy

• Market economy

• Command economy

What are subsistence farms?

• Large commercial farms that export food globally

• Farms where people grow enough food for their families and communitie

• Government-owned farms used for trade

• Farms that specialize in only one crop for selling