Geo Chapter 4 - Review Flashcards
what are the five economic questions + some example answers
there are 5 economic question…
-Who produces goods and services
-what goods and services are produced
-how are goods and services produced
-for whom are goods are goods and services produced
-how are goods and services distributed
What are the four economic resources
there are four economic resources…
-land
-labor
-capital
-entrepreneurship
What are land resources (1of4)
In economic terms, land is the resources of the earth - the raw materials of industry and business. Some places have a lot of land (Canada), while others have limited land (asia)
What are labor resources (2of4)
Labor is the work of people. This work plays an important part in producing goods and services. For example, in India there is the necessary resources to make produce steel in there mills. This alone is not enough as to create the steel, we need people with skilled labor to mange and operate the steel mills
what are capital resources (3of4)
In economics, the word capital means investment money and all it can buy. Therefore, capital includes not only money but also capital goods (Goods and services used in the production of other goods). There is also foreign investment. When a project costs millions, it might require a foreign investment. These are investments from outside country investors. The problem with them is that the money made by the project goes to the investors home country
What is entrepreneurship (4of4)
An entrepreneur is a leader. There like a captain of a sports team. If there entrepreneurial skills are weak, the business will easily fail. An entrepreneur should be able to recognize business opportunities and combine the factors of land, labor, and capital to make a profit
What is the market economy
The market economy is a system in which businesses and consumers decide what they will produce or purchase
What is in the “driven by profit” paragraph for the market economy
there are multiple points but the most important are…
The system of how the prices are chosen has stayed the same for years. Its where the prices are decided by the supply sent to the market and the demand of the customers
The Scottish professor, Adam smith was the first to describe the market economy in his book and see the value of the market economy itself
What are some of the market economies problems
there are two problems talked about in the textbook…
The first were entrepreneurs who used aggressive and powerful actions to get there way. They were called robber barons. They commonly owned and operated many factories, railway lines, etc. There investments made them rich and be able to live in luxury. The problem is that while they received more then they needed, the common worker was receiving less then they needed
The second problem was that economic depressions. The most know example is the great depression. During this, factories were closed, workers laided off, and a 10 year period of widespread poverty. After this was over, the market economy couldn’t fix itself and had to get help from the government to re-sustain itself
why is it hard to chose between profit or environment in the market economy
this chose is hard as profit means growth and more jobs, but hurts the environment and us in the long run. There are some companies who plant trees, and recycle to lower there damage, yet this is costly and because of that, most companies don’t
What is the traditional economy
The traditional economy is an economic system in which decisions are based on customs, beliefs, and religions, within a strong social community
What is in the “hunting and gathering” paragraph for traditional economy
to summarize this paragraph, as traditional economy’s begin to fade away, we remember our old ways and realize we were stronger socially and always shared unlike in modern day where we do everything to benefit ourselves
What is in the “subsistence agriculture” paragraph for traditional economy
To summarize this, this is where there is a subsistence farmer who works all day on the farm, yet the farm is big enough to only feed his family. while he works all day, his family also works in different ways to support the family. This farm takes place on marginal land as it can only have small farms, not commercial ones
