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C719
module 2
Question | Answer |
---|---|
Payments made for labor | Wages |
Payments made for capital | Interest |
Payments made for land | Rent |
Payments made for entrepreneurship | Profit |
Factories and computers are an example of... | Capital |
First of the three basic questions | What is produced? |
Second of the three basic questions | How is it produced? |
Third of the three basic questions | For whom is it produced? |
Type of economy that relies on traditions. | Traditional |
Type of economy that relies on buyers and sellers. | Market |
Type of economy that relies on a central authority. | Command |
Type of economy that uses elements of all other types. | Mixed |
In the circular flow, goods and services are traded in the... | Product market |
In the circular flow, land, labor, capital, and enterprise are traded in the... | Resource market |
The two-sector circular flow model is comprised of.... | Households and Firms |
When someone has the lowest opportunity cost, they have the... | Comparative Advantage |
When someone chooses to focus on producing one good, it is called... | Specialization |