Economics Basic Term Review

What will be produced? How will it be produced? For whom will it be produced?

Knowledge and skills that make it possible for workers to earn a living

This economic system is based on customs and beliefs of the past.

All countries in the world have this type of economic system

A country having more factors of production will have what effect on the country?

People who risk their own money to start a business

What is the relationship between GDP and standard of living?

This factor of production is also called land

True or false: there are countries with pure command and pure market economic systems

In this economic system, economic decisions are based on current prices and supply and demand.

The workers who make a business run (ex. cashiers, bakers, teachers, etc.)

Why would a country specialize in a product?

In this economic system, all decisions are made by the government

The factories, buildings, machines, and technology used to have a business operate

What is gross domestic product?