| A | B |
|---|
| Communist countries place heavy emphasis on | capital formation |
| The availability of natural resources, labor, capital goods, and willing entrepreneurs | what is needed to produce goods |
| disadvantage of communism for managers in a communist country | lack of freedom to decide what to produce |
| wanting a product AND having the financial means to buy that product is known as | demand |
| this economic factor decreases the prurchasing power of money | inflation |
| changing a products physical attributes to make is more useful to consumer is known as this type of utility | form utility |
| type of economy where a central planning authority determine what, how, and for whom goods and services are produced | command |
| command economy includes which two types of econmic systems | socialist and communist |
| What happens when a good or service is privatized | Costs decrease and efficiency increases |
| political-economy system does the government have extensive control over the allocation of some resources but little control over distribution | socialism |
| right to own property is not a feature of | pure communism |
| if demand drops then you can expect this to also drop | profit |
| if there is a shortage of a product you can expect price to do this | increase |
| A country's economic growth occurs when | output exceeds population growth |
| The production of capital goods. | capital formation |
| Accumulated knowledge and skills of human beings. | human capital |
| The human effort expended to produce goods and services. | labor |
| Anyone who creates utility | producer |
| Anything provided by nature that affects the productive ability of a country | natural resources |
| The way that a country decides how to use its productive resources | economic system |
| The number of products that will be bought at a given time at a given price. | demand |
| The number of like products that will be offered for sale at a particular time at a particular price. | supply |
| Rivalry among sellers for consumers’ dollars. | competition |
| A measure of the average change in prices of consumer goods and services | CPI |
