economics ch. 3 Flashcards
the production of goods is the result of the combination of
certain resources
these resources are called
factors of production
cyber economy emphasizes the role that information plays in its use with
the factors of production
4 main categories of these resources are
capital, entrepreneurship, natural resources, info, labor
information
facts and figures used to enhance the combination of the factors of production
another name for command economy
planned or directed economy
command economy is the system in which a centralized authority determines
the PD of goods and services as well as savings, investments, and prices.
traditional economy is the system in which decisions involving the
PDC of goods are based upon custom, heredity, and caste
free enterprise is the system in which
people are free to make their own economic choices
private capitalism aka
market economy
private capitalism is where people are allowed to make their own choices without
governmental interference and excessive regulations
mixed economy is the system that combines
free enterprise with heavy state regulations
natural resources
land and other raw materials
labor
any work for the production of goods
an economic system that provides just enough to keep a society alive
subsistence economy
