3.1 and 3.2 study guide
1.
Government decides how and what goods are to be produced in this type of political system.
Communist
2.
An economic system in which a central planning authority owns most of the factors of production and determines what, how, and
for whom goods and services will be produced is called a:
Command economy
3.
An organized way for a country to decide how to use its productive resources is called an:
Economic system
4.
Consumer goods are often in short supply in a ________ country.
Communist
5.
Nearly any individual may start a business in a ________ country.
Capitalist
6. A command economy is most often practiced by communist countries.
7.
The freedom to own land and other property is a trait of:
Capitalism
8.
Those resources needed to produce all goods and services are:
Factors of production – natural resources, labor, capital goods, entrepreneurship
9. Products produced for sale to individuals and families for personal use – consumer goods
10. Knowledge that relates to producing and using goods and services that satisfy human wants – economics
11. Accumulated knowledge and skills of human beings; the total value of each person’s education and acquired skills –
human capital
12. Anything provided by nature that affects the productive ability of a country – natural resource
13. The ability of a product or service to satisfy a want – utility
14. A economic-political system where individuals are free to go into business for themselves, produce whatever they
choose to produce, and distribute what they produce as they please – capitalism
15. The desire for scarce material goods and services – economic wants
16. Economic system that determines what, how, and for whom goods and services are produced by coordinating
individual choices through arrangements that aid buying and selling goods and services – capitalism
Textbook website:
http://www.cengage.com/school/bpmxtra/