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28 Cards in this Set
- Front
- Back
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Factors of Production
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Land, Labor, Capital, Management
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Land
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All natural resources
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Labor
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All paid work
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Capital
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Money+Goods (tools+equipment) used in production and distribution
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Management
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Any idea/information that helps to organize
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Example of Traditional Economy
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Omish Country
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Command Economy
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Decisions about what to produce, how to produce and to whom goods and services will be allocated made by government
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Market Economy
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Decisions about what to produce, how to produce and to whom goods and services will be allocated made by individuals
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U.S Economy
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Mix of Command and Market
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Fiscal Policy made by...
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President & Congress
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Monetary Policy made by...
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The Federal Reserve Board
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Methods of Fiscal Policy
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Tax Cuts, Government Spending Programs
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Method of the Federal Reserve Board
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Lower interest rates
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Result of Lower Interest Rates
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Increase consumer spending
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Result of Government Spending programs
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Can potentially create jobs
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Advantages of Fiscal Policy
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Can just target one region of country in an economic slump
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Advantages of Monetary Policy
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Can be implemented quickly
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Disadvantages of Fiscal Policy
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Slow implementation, no guarantee that tax cuts will lead to spending
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Characteristics of Expansion (Boom)
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Low unemployment, High GDP, high consumer spending, inflation rising
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Characteristics of Recession (Bust)
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unemployment rising, lower GDP, falling consumer spending, low inflation
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Gross Domestic Product
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the value of all the goods and services produced
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Inflation
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an increase in the average level of prices
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Unemployment
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the level of people actively looking for work who cannot find work
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Sole Proprietorship
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a buisness owned by one person. Owner has full control over the operations
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Partnership
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a buisness in which two or more people share ownership and control
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Corporation
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a buisness organization owned by shareholders who buy shares of stock in the company
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Factors that can cause change in demand
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Changes in consumers preferences, price of a substitute, consumer incomes, consumer population size
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Factors that can change supply
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Change in the input cost (land, labor, capital, management), tech changes
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