The tools, equipment, machinery, and factories used in the production of goods and services. (be specific)
physical capital
believed that the government should intervene during down times (depression/recession) in the economy.
believed that the government should intervene during down times (depression/recession) in the economy.
believed in the Free Market price system based entirely on voluntary exchange
Milton Freidman
Factor of production that includes knowledge/training (be specific)
human capital
economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services
traditional
The three economic questions
what, how, and for whom
economic system where the people and the government answer the economic questions
mixed
wrote the Wealth of Nations, founder of capitalism
Adam Smith
founder of communism, wrote the Communist Manifesto
Karl Marx
A situation in which unlimited wants exceed the limited resources available to fulfill those wants
scarcity
believed some government regulation would eventually cause entire government control in society
Friedrich Hayek
an economic system where the individuals/businesses answer the economic questions
free market
natural resources that are used to make goods and services
land
Land, labor, and capital; the three groups of resources that are used to make all goods and services
factors of production
Giving up one thing for another, decision
trade off
best alternative not chosen
opportunity cost
the effort directed toward producing goods and services
labor
An economic system in which the government controls a country's economy.
command