7/23/2019 Economics Quiz 1
1/1
Economics
Traditional Economy production decisions are made according to
customs and traditionsCommand System The system that works under the principle that
the interest of society should prevail over that ofthe individual
Market System The market prices serve as signals to the
producers about what goods to produce and how
much of these goods should be producedMixed System The economic problems are answered
predominantly through the price mechanism and
modied through government interventionMarket System An economy where individuals exercise free
enterpriseHousehold Basic consuming unit
Land It includes water, forest, and animalsLabor an!s mental and physical e"orts exerted in
productionCapital achines, tools, e#uipment used in productionEntrepreneur Brains behind the business
Capital Inputs used in productionInterest $rice of capitalWages $ayment made to laborRent $ayment made to use of landMacroeconomics %ational income analysisositi!e Economics &tudy of what is
Microeconomics &tudy of price theory"ormati!e Economics 'eals what should beWants desires and needs of consumers that needs to be
satised#asic "eeds an!s needs re#uired for survival