What are the four Factors of production Natural Resources Labor Capital (Human & Physical) Entrepreneurs

What are the Three basic economic questions What should we produce? How should we produce it? For whom should we produce it?

How does the Government sector affect the Circular flow model?

They are results of production. Define Capital Goods They are results of production. Capital aid production of consumer goods Example: Tools

What is the difference between a market and a command economy? Decisions are made in free markets based on the interaction of supply and demand. The individual has little no say on basic economy functions The government controls the economy

In which market do products offer goods and services to households Product market

What is human capital The knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances

Explain Profit Motives

Which market involves the buying and selling of productive resources Resource/Factor Market

Our Right to chose the job or occupation we would like to have falls under which feature of capitalism? Economic Freedom

What is The Governments role in a command economy

What is consumer sovereignty?

Explain adam smith and the invisible hand

What economic Policy would a supporter of laissez-faire economics support?

What happens to prices in a shortage? Scarcity v. Shortage

It will probably increase. If the price of a complementary good decreases, what happens to demand for the original product? It will probably increase.

What is the amount by which the quantity supplied is higher than the quantity demanded? Surplus

What causes demand to increase? (i) The fashion for a goods increases or people’s tastes and preferences become more favorable for the good;  (ii) Consumer’s income increases.  (iii) Prices of the substitutes of the goods in question have risen.  (iv) Prices of complementary goods have fallen.  (v) Propensity to consume of the people has increased and  (vi) Owing to the increase in population and as a result of expansion in market, the number of consumers of the goods has increased.

What is the relationship between demand and number of consumers?

If demand goes down what happens to the equilibrium price?