Business-factors of production test

Factors of Production

the resources that a country’s businesses use to produce goods and services

Labor

physical and mental capabilities of people as they contribute to economic production

Capital

funds needed to create and operate a business enterprise 

Entreprenuers

business person or individual who accepts the risks and opportunities involved in creating and operating a new business

Physical Resources

tangible items such as natural resources, raw materials, offices, storage and production facilities, parts and supplies, computers and equipment that organizations use in the conduct of their businesses 

Informational Resources

data, economic forecasts, specialized knowledge and other information used by businesses

Planned Economy

economy that relies on a centralized government to control all of most factors of production and to make all or most production and allocation decisions

Communism

a political system in which the government owns and operates all factors of production. Today North Korea, Vietnam, Laos, Cuba,and the People's Republic of China are the only remaining that are controlled by communist parties.

Market Economy

an economy in which individuals control production and allocation and the business decisions through supply and demand.

Capitalism

System that allows private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive. Ex. USA,Japan, and some of Europe. 

Mixed Market Economy

economic system featuring characteristics of both planned and market economies.

Socialism

Planned economic system in which the government owns and operates some or most industries. In between mixed market and communism.