Economics Flashcard

Front

Which statement best describes a defining characteristic of traditional economies?

Back

Production is based on cultural customs.

Front

Which effect is most associated with a shortage of labor?

Back

Fewer goods are produced.

Front

Which economic issue is most associated with a shortage of capital?

Back

not enough money to build new factories

Front

Which term describes a factor of production? Options: inflation, labor, scarcity, tariff

Back

labor

Front

How does a free enterprise system address the basic economic problem of scarcity and choice?

Back

Price mechanisms are based on the laws of supply and demand.

Front

Which feature of the Soviet economy limited the ability of individuals to make economic choices?

Back

central planning

Front

When the resource allocation decisions are made by the government but property is typically owned by individuals, this type of economy is most likely

Back

market socialism.

Front

How does Japan maintain its wealth with limited natural resources?

Back

Japan trades technology to get the resources it needs.

Front

Purpose of international trade?

Back

Nations can obtain goods they are unable to produce on their own.

Front

The largest source of income in most states today comes from: federal grants, income taxes, highway tolls, sales taxes.

Back

income taxes.