| A | B |
|---|
| natural resources, labor, entrepreneurship and capital goods | factors needed to produce good |
| these countries place heavy emphasis on capital formation | communist |
| in this type of country, the government decides what is to be produced | communist |
| having a consumer who is both willing and able to purchase a product is referred to as | demand |
| decreases the purchasing power of money | inflation |
| changing the form of a product to make it more useful to the consumer is known as this type of utility | form utility |
| In an increasingly technological world, the need for human capital has | increased |
| In which type of economy does a central planning authority determine what, how, and for whom goods and services are produced | command |
| The right to own property is not a feature of | pure communism |
| If demand drops | profit drops |
| this happens when a good is privatized | Costs decrease and efficiency increases |
| In which political-economy system does the government have extensive control over the allocation of some resources but little control over distribution | socialism |
| If a product is in short supply | the price will typically go up |
| if output exceeds population growth then this will occur | economic growth |
| The production of capital goods | capital formation |
| Anything provided by nature that affects the productive ability of a country. | natural resources |
| The human effort expended to produce goods and services. | labor |
| The way that a country decides how to use its productive resources. | economic system |
| Accumulated knowledge and skills of human beings. | human capital |
| Anyone who creates utility | producer |
| The number of products that will be bought at a given time at a given price | demand |
| Rivalry among sellers for consumers’ dollars. | competition |
| The number of like products that will be offered for sale at a particular time at a particular price | supply |
| A measure of the average change in prices of consumer goods and services. | CPI |
