What is the fundamental problem in economics?
unlimited liability limited access to funding limited life these are disadvantages of a ______________
sole proprietor
the ability to learn a task or skill very well
specialization
Quick to adjust to change can provide more equal incomes these are all strengths of a _____________ economy.
Command.
example of a good
Pair of Shoes.
Easy to start shared decision making larger pool of capital these are advantages of a ______________.
Partnership.
unlimited liability potential for conflict limited life these are disadvantages of a ______________
Partnership.
The force that encourages people and organizations to improve their material being
Profit Motive.
What is the fundamental problem in economics?
Scarcity.
Easy to start few regulations owner keeps profits easy to sell owner in complete control these are advantages of a ______________.
Sole proprietor.
Underutilization
Using fewer resources than an economy is capable of using.
What are the 3 basic economic questions?
What will be produced, how will it be produced, who are we producing it for.
In a ____________ economic system investments are determined by private decisions rather that state control.
Free enterprise/ market
Example of a consumer good:
Clothing.
Often fails to meet the needs or wants of the people lacks incentive to work these are all weaknesses of a _____________ economy.
Command
The role of the consumer as ruler of the free market?
Consumer sovereignty.
Factor market.
Firms purchase the factors of production from households.
An example of a Nondurable good is a?
Gas for your car.
A general rise in prices over time
Inflation.
What are the 4 factors of production?
Land, labor, capital, entrepreneur.
High degree of customer satisfaction economy can change direction over time high degree of freedom for buyers and sellers these are all strengths of a _____________ economy.
Market.
Market may fail doesn't provide a safety net for those who cannot work these are all weaknesses of a _____________ economy.
Market.
What is the most common type of economy?
Mixed.
What is an example of a need and a want?
Need: water/food. Want: big screen TV.
Everyone can compete in the marketplace
Open Opportunity.
Example of a service
Restaurant.
How do consumers exercise their power or vote in a market economy?
They buy goods and services.
Low standard of living discourage new ideas difficult to adjust in a disaster these are weaknesses in a ___________ economy.
Traditional
Everyone knows their role Easy to make decisions Life is generally stable and predictable these are all strengths of a _____________ economy.
Traditional.
An example of a durable good is a?
Washer and Dryer.
difficult and expensive to start double the taxes potential loss of control by founders more legal requirements/restrictions these are disadvantages of a ______________
corporation
limited liability for owners easy to sell easy to attract capital long life these are advantages of a ______________
corporation
Example of a capital good:
machinery
