Chapter 2 Topics and Content to Review for the Test Test – Friday, 10/3 **In order to adequately prepare for this test, you should review the following: this study guide, all class notes, class activities and assignments, and have read chapter 2 in the textbook. Vocabulary You should be able to define, explain, and apply (and properly spell!) the following terms. Scarcity (and its economic impact) Factors of Production Natural Resources Labor Resources Capital Resources Entrepreneurial Resources Entrepreneurship Entrepreneur Economics Economic Systems Market Economy Price Supply Demand Equilibrium Price Command Economy Mixed Economy Complete the chart below in order to explain each of the factors of production: Factors of Production In your own words, explain the difference between renewable and nonrenewable resources. Be sure to also provide an example of each. List defining characteristics of a market economy. Give an example country. List defining characteristics of a command economy. Give an example country. Record and explain the three basic economic questions that society uses to make economic decisions. o o o Draw a rough sketch of a supply and demand graph on the same axis. o What is the term for the meeting point of the two lines? What purpose does this point serve?