Economics Chapter Quiz

The resources used to produce goods and services. It includes land (natural resources), labor (human effort), capital (tools and equipment), and entrepreneurship (the ability to combine the other factors).

An economic system where individuals and businesses own and control the factors of production, and prices are determined by supply and demand.

An economic system where the government controls the factors of production and sets prices.

An economic system that combines elements of market and command economies, allowing for both government intervention and private enterprise.

The incentive for individuals and businesses to produce goods and services due to the potential for profit.

The fundamental problem in economics, dealing with the scarcity of resources in relation to unlimited human wants.

The process of deciding what to produce, how to produce it, and for whom to produce it.

The four essential elements of a free enterprise system: private property, entrepreneurship, capital, and the price system.

The right of individuals and businesses to own and control resources.

The ability to combine the factors of production to create new goods and services and to take risks in pursuit of profit.

The tools, equipment, and infrastructure used in the production of goods and services.

The mechanism by which buyers and sellers communicate their preferences and prices for goods and services.

A deposit account that earns interest, but requires a notice period and other restrictions to withdraw funds.

A type of time deposit that offers a fixed interest rate for a specific period.

An organization that insures deposits in most banks and savings associations.

The process of allocating scarce resources among unlimited wants.

The unequal distribution of income among individuals and households in a society.

The organization that regulates the stock market and protects investors.

A trade agreement that eliminates tariffs and other trade barriers between the United States, Canada, and Mexico.

A combination of various investments, such as stocks, bonds, and real estate. It is managed by an investment professional.