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Cards In This Set
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Define mixed economy.
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An economy in which both individuals and government make economic decisions regarding the production, distribution and consumption of goods and services.
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Define market economy.
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An economy in which supply and demand determines what is produced, how much is produced, and the prices of items without outside influences.
Individuals and private business make the economic decisions. Prices in a market economy are established by the supply and demand of the market. eg., if there is a large demand and a small supply the price will rise. If there is a large supply and little demand, the price will fall. |
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Define monopoly.
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A market with only one supplier or seller.
Monopolies are generally negative for consumers because prices rise and consumer choice is absent. |
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Define command (or planned) economy.
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An economy in which the government makes all the decisions on the production, distribution and consumption of goods and services.
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What is competition?
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When producers or suppliers of a particular good or service work to attract consumers.
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Define economics.
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The production, distribution, management, and consumption of goods and services.
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What is demand?
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The ability and desire of consumers to purchase goods and services.
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What is supply?
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The goods and services a business provides.
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What is an economic system?
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The way a society organizes the production, distribution and consumption of goods and services.
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What does the economics of a country affect?
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Incomes people make, jobs people have, and taxes people pay to the government.
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Define scarcity.
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In economics, when there is a limited supply of something but an unlimited demand.
The idea that land (materials), labour and capital (money) limit the supply of what people what and need. |
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What are the factors of production?
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Land, labour and capital.
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Describe how land is a factor of production.
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Land consists of all the materials found in the natural environment needed to produce goods and services such as renewable resources (eg. trees, raspberries) and non-renewable resource (eg. oil, gold).
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Describe how labour is a factor of production.
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Labour consists of the physical and mental effort needed to produce goods and services (eg. agricultural workers to produce foods, servers to staff restaurants).
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Describe how capital is a factor of production.
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Constists of the money that people own or borrow, used to purchase equipment, tools and other resources to produce goods and services.
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