CHAPTER 2 NOTES
INTRO TO BUSINESS
Factors of Production
A shortage of resources is called ______________.
The means to produce society’s wants and needs are called economic resources, or
____________ ____ ____________.
Natural Resources
The raw materials found in nature are called ______________ _________________.
__________________ resources can be reproduced.
__________________ resources are limited and cannot be reproduced.
Human Resources
The knowledge, efforts, and skills people bring to their work are called human resources, or
____________.
Labor can be ___________________ or _______________, physical or intellectual.
A big problem facing many nations today is a shortage of ______________ labor.
Capital Resources
____________ _____________ are the things used to produce goods and services.
Capital Resources include _______________, _________________, and ________________.
Entrepreneurial Resources
Meeting the changing wants and needs of people requires ______________ _____________.
__________________ improve on ways to use resources, or create and produce new ones.
Types of Economic Systems
_________________ studies how society chooses to use resources to produce and distribute
goods and services for people’s consumption.
The primary goal of an economic system is to provide people with a minimum ______________
____ _______________.
What are the two basic economic systems?
1. ________________________
2. ________________________
Market Economy
In a ____________________ economy decisions are made in the marketplace.
____________ is the amount of money asked for when goods and services are sold.
____________ is the amount of goods and services that consumers are willing to buy at various
prices.
The ___________ the price the fewer items people will buy, the __________ the price the more
items people will buy.
_______________ is the amount of goods and services provided at various prices.
When supply and demand meet the price is called the ___________________ price.
______________ or private enterprise resources are privately owned.
What two problems with a market economy?
1.
2.
Command Economy
In a __________________ economy decisions are made by a central authority.
In ___________________ the state makes all the economic decisions.
In ___________________ there is some form of private enterprise.
What is the primary advantage of a command economy?
What are two disadvantages to a command economy?
1.
2.
Mixed Economy
In a mixed economy the ____________ takes care of people’s needs, while the
________________ takes care of people’s wants.