Introduction to Business s1

Name______Principles of Business, Marketing, & Finance CHAPTER 2 ECONOMIC RESOURCES AND SYSTEMS DEFINITIONS: Scarcity-

Factors of production-

Natural resources-

Human resources-

Capital resources-

Entrepreneurial resources-

Economics-

Market economy-

Supply-

Demand-

Equilibrium price-

Command economy-

Mixed economy- Chapter 2- Learning Objectives

List the four factors of production-

What is the difference between market and command economics?

Explain why most countries prefer a mixed economy?

How can a change in supply increase a price? A change in demand?

In what economic system are the resources privately owned? Owned and controlled by the government? CHAPTER 2- Economic Resources and Systems FAST REVIEW

1. What is scarcity?

2. What are some examples of capital resources?

1. When a society chooses to use a resource for one purpose and gives up the opportunity to use it for some other purpose, what cost is involved?

2. What happens to production methods when a country discovers new ways to combine economic resources?

3. In most countries, what determines how many goods and services a person can buy? Pg. 27.

1. Summarize how economic decisions in the market economy are made.

2. Compare the types of economic systems.

3. What are the advantages and disadvantages of a command economy and a market economy?