Basic Economics Concepts

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

• Gross Domestic Product

• currency exchange

• continuum

• voluntary trade

There are 4 _______________. They are natural resources, human capital (labor), capital goods, and entrepreneurship.

• Factors of Production 
• Market Economy 
• Profit 
• Economics 

Man-made resources used in the production process. Examples are: machines in a factory. new technologies, improvements in roads, and publicly accessible facilities

• Human Capital

• Capital Goods

  (Physical Capital)

• Natural Resources

• Entrepreneurship

What economic system is based on supply and demand, in which consumers and producers can buy and sell what they want?

• Traditional Economy
• Command Economy

• Market Economy

In traditional economies what is the term for exchanging goods and services without using currency (money)?

• Trade off
• Bartering
• Stealing
• Tariff

What is a naturally-made item, such as a tree, mineral, or fresh water, that people can use to help meet a need or want?

• Capital

• Natural Resource

• Literacy

• Entrepreneurship

_____________ is the talents, skills, and labor of people that can be used to produce goods and services.

• Human Capital

• Natural Resources

• Capital

• Entrepreneurship

_____________ are the people who have an idea for a product, business, or the improvement of a good or service and take a financial risk to produce it.

• Human Capital

• Natural Resources

• Capital

• Entrepreneurs

What are the factors of production?

• Land, Technology, Dirt, Resources

• Land, human capital, Capital goods (physical), Entrepreneurship

• Land, Labor, Entrepreneurship

• Resources used in the production of only services

Which factor of production uses the other 3 factors to bring their ideas to life?

• Human Capital

• Natural Resources

• Capital Goods

• Entrepreneurship