Economic Concepts Review

Factors of Production Economic Types SupplyDemandMixed Bag

Factors of Production: 100 Question: Workers are listed as what factor of production? Answer Labor

Factors of Production: 200 Question: What is the last factor of production? Answer Capital

Factors of Production: 300 Question: How does the location of a business in a 3 rd world country affect the factor of Labor? Answer You can hire more labor for a cheaper price.

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)

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.

Economic Types : 100 Question: What are two of three economic systems? Answer Market and Command

Economic Types: 200 Question: In this economic system resources are privately owned? Answer Market Economy

Economic Types: 300 Question: A Market Economy is also called? Answer Free Market, Capitalism

Economic Types: 400 Question: This economic system is controlled by a central authority Answer A command economy

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

Supply: 100 Question: The amount of goods and services that producers will provide at various prices is called? Answer Supply

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

Supply: 300 Question: As the quantity supplied increases, how is price affected? Answer Price Increases

Supply: 400 Question: As price increase in a supply curve, what happens to quantity? Answer Quantity Increase

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.

Demand: 100 Question: The amount or quantity of goods/services that consumers are willing to buy at different prices is called? Answer Demand

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

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

Demand: 400 Question: In a demand curve, what happens to quantity as price increases? Answer Quantity decreases

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.

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

Mixed Bag: 200 Question: The point where the supply curve meets the demand curve is called? Answer The equilibrium price.

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

Mixed Bag: 400 Question: An example of 2 or more businesses which dominate a certain industry. Answer Oligopoly