Economic Concepts Review

Economic Concepts Review

Factors of Production

Economic Types

Supply Demand Mixed Bag

100 100 100 100 100

200 200 200 200 200

300 300 300 300 300

400 400 400 400 400

500 500 500 500 500

Factors of Production: 100

• Question:• Workers are listed as what factor of

production?• Answer• Labor

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Factors of Production: 200

• Question:• What is the last factor of production?• Answer• Capital

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Factors of Production: 300

• Question:• How does the location of a business in a 3rd

world country affect the factor of Labor?• Answer• You can hire more labor for a cheaper price.

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Factors of Production: 400

• Question:• What are the two types of Capital? Please

give an example of each.• Answer• Fixed and Working Capital (ex of Fixed –

Machines. Ex. of Working – Cash and stocks)

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Factors of Production: 500

• Question:• Please explain why a farmer in Nebraska

factors of production is different than a farmer in rural Vietnam?

• Answer• Labor is going to be cheaper because of the

minimum wage. Back

Economic Types : 100

• Question:• What are two of three economic systems?• Answer• Market and Command

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Economic Types: 200

• Question:• In this economic system resources are

privately owned?• Answer• Market Economy

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Economic Types: 300

• Question:• A Market Economy is also called?• Answer• Free Market, Capitalism

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Economic Types: 400

• Question:• This economic system is controlled by a

central authority• Answer• A command economy

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Economic Types: 500

• Question:• This economic system is when the government

controls certain economic decisions and other decisions are controlled privately.

• Answer• A Mixed Economy

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Supply: 100

• Question:• The amount of goods and services that

producers will provide at various prices is called?

• Answer• Supply

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Supply: 200• Question:• What affects the quantity supplied?• Answer• Price

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Supply: 300• Question:• As the quantity supplied increases, how is

price affected?• Answer• Price Increases

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Supply: 400• Question:• As price increase in a supply curve, what

happens to quantity?• Answer• Quantity Increase

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Supply: 500• Question: How does natural resources affect

Supply?• Answer:• Some businesses do not have enough natural

resources to meet the supply. This can limit the quantity supplied.

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Demand: 100• Question:• The amount or quantity of goods/services that

consumers are willing to buy at different prices is called?

• Answer• Demand

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Demand: 200• Question:• As quantity decreases what happens to price?• Answer• Price will increase

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Demand: 300• Question:• The more people demand• Answer• The price decreases or falls

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Demand: 400• Question:• In a demand curve, what happens to quantity

as price increases?

• Answer• Quantity decreases

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Demand: 500• Question:• What are the differences between the

demand chart for water and Mercedes Cars?• Answer• The demand is greater for water so the price is

lower and the quantity is greater.

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Mixed Bag: 100• Question:• In this example of a market type where

businesses are competing against each other selling an identical product.

• Answer• Perfect competition

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Mixed Bag: 200• Question:• The point where the supply curve meets the

demand curve is called?• Answer• The equilibrium price.

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Mixed Bag: 300• Question:• Goods are also called?• Answer• Tangible Products

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Mixed Bag: 400• Question: An example of 2 or more

businesses which dominate a certain industry.

• Answer

• Oligopoly

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