Chapter 8 Test Review

The reward for producing goods and services

The ability of a good or service to satify a want

refers to the number of like products that will be offered for sale at a particular time

This is essential for our capitalistic system

refers to the number of products that will be bought at a given time

extreme socialism where the goverment controls the nations factors of production

The human effort, either physical or mental, that goes into the production of goods and services

The accumulated knowledge and skills of human beings

An example of capital goods would be

Created when a product or service is available when it is needed or wanted

The production of capital goods

Created by changes in the form or shape of a product to make it useful.

The body of knowledge that relates to producing and using goods and services that satisfy human wants

The desire for scarce material goods and services

A political economy sytem in the USA

Goods and services that directly satisfies people's economic wants

Created when ownership of a good is transferred to one person to another, but may also occur through renting

Economic system in which individual buying decisions in the marketplace together determine what is produced

Created by having a good or service at the place it is needed or wanted

when a person starts their own business

Rivalry among sellers for consumer dollars

An economic system, under the control of a country's government, owns factors of production

An economic system that has aspects of both the market and command economy

An organized way for a country to decide how to use its productive resources

Items of value that individuals have the right to own, use, sell are known as

People receiving income for manual labor

Anyone who creates a utility is a

a political economy system in which the government controls the use of the country's factors of production

Natural resources, labor,capital goods, and entrepreneurship are examples of

Desires for non material things that are non scarce such as air, sunshine, friendship,and happiness