| A | B |
|---|
| must have the availability of these 4 factors of production to produce goods | natural resources, labor, capital goods, entrepreneurship |
| thes types of countries place heavy emphasis on capital formation | communist |
| advantage of capitalism | businesses have freedom to decide what to produce |
| decreases the purchasing power of money | inflation |
| In an increasingly technological world, the need for human capital | has increased |
| is represented by to being willing and ABLE to purchase an item | demand |
| in this type of a central planning authority determine what, how, and for whom goods and services are produced | command |
| producing an item in a way that is more useful to consumers because of how it is made or product characterstics is known as | form utility |
| political-economy system where the government have extensive control over the allocation of some resources but little control over distribution | socialist |
| Costs decrease and efficiency increases when a good or service is | privatized |
| If demand drops | profits drop |
| The right to own property is not a feature of | pure communism |
| If output exceeds population growth then an economy will | be in a growth stage |
| The production of capital goods | capital formation |
| If a product is in short supply, price will do this | rise |
| The human effort expended to produce goods and services | labor |
| Accumulated knowledge and skills of human beings. | human capital |
| Anything provided by nature that affects the productive ability of a country. | natural resources |
| Anyone who creates utility | producer |
| The way that a country decides how to use its productive resources | economic system |
| 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 |
| Rivalry among sellers for consumers’ dollars. | competition |
| The number of products that will be bought at a given time at a given price. | demand |
