1. What are the four factors of production?
     natural resources, labor, capital and entrepreneurship.
  2. What is Economics?
    the branch of social science that deals with goods & services.
  3. What are economic products?
    something that brings money into the economy.
  4. What are manufactured goods?
    goods that have been processed by way of machinery.
  5. Why does the study of economics help?
    Economics is the social science that deals with the production, distribution, and consumption of goods and services.
  6. What is the purpose of the production possibilities frontier?
    a curve depicting all maximum output possibilities of two or more goods given a set of inputs.
  7. What is the role of the government in a command economy?
    It is an economic system in which the central government makes all decisions on the production and consumption of goods & services
  8. What is Capitalism?
    an economic system based on private ownership of capital.
  9. What are the characteristics of a free enterprise economic system?
    Basic production facilities-land and capital-are privately owned.
  10. What is voluntary exchange?
    when buyers and sellers are free to engage in market transactions with few outside restrictions.
  11. What is the role of the entrepreneur?
    Entrepreneurs occupy a central position in a market economy.
  12. What is the main disadvantage of general partnership?
     legal liability and management issues.
  13. How does a corporation start?
    Obtaining Certificate of Incorporation from local State office or business retailer.
  14. How does liability work in corporations?
    volunteer work, community service. 
  15. What happens when two firms merge?
    Firms will merge in order to gain market power.
  16. What is a verticle merger?
    is between two companies producing different goods or services for one specific finished product.
  17. What are the different types of nonprofit organizations?
    NPOs are often charities or service organizations.
  18. What do non-profit organizations provide?
    volunteer work, community service. 
  19. What is a professional association?
    an association of practitioners of a given profession.
  20. What direct role does the American government play in our economic system?
    With separation of powers, legislative, executive, & judicial branches are kept distinct.
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