Econ Unit 1: Week 2 Key Terms

1. The factor of production referring to any human-made resource that is used to produce other goods and services

• Capital

• Land

• Labor

• Entrepreneurship

1. A market-based economic system in which the government plays a limited role

• 1. Traditional economy

• 1. Command economy

• 1. Free-market economy

• 1. Mixed economy

1. Using resources in such a way as to maximize the production or output of goods and services

• 1. Entrepreneurship

• Efficiency

• Underutilization

• Capital

1. An economic system that relies on habit, customs, and time-honored beliefs

• 1. Traditional economy

• 1. Command economy

• 1. Free-market economy

• 1. Mixed economy

1. The factor of production referring to the effort that a person devotes to a task for which the person is paid

• Capital

• Land

• Labor

• Entrepreneurship

1. Using fewer resources than the economy is capable of using

• Entrepreneurship

• Efficiency

• Underutilization

• Capital

1. Economic decisions are made by individuals and are based on exchange or trade

• 1. Traditional economy

• 1. Command economy

• 1. Free-market economy

• 1. Mixed economy

1. The factor of production referring to when ambitious leaders decide how to combine the other factors of production to create new goods and services

• 1. Capital

• Land

• Labor

• Entrepreneurship

1. The factor of production referring to all natural resources used to produce goods and services

• Capital

• Land

• Labor

• Entrepreneurship

1.  Economic decisions are made by the central government alone

• 1. Traditional economy

• 1. Command economy

• 1. Free-market economy

• 1. Mixed economy