Labor

Capital

Entrepreneur

Land

Capital

Labor

Land

Entrepreneur

guaranteeing that all entrepreneurs make a profit.

giving citizens unlimited resources to fulfill their wants.

reducing the total factors of production needed to make goods.

organizing limited resources to meet citizens' wants and needs.

By allowing entrepreneurs to create new ideas to meet people's needs

By forcing businesses to provide services to citizens for free at all times

By avoiding scarcity and giving people unlimited resources to fulfill their wants

By reducing the number of factors of production needed to make goods

making sure all citizens have their most important needs met.

considering which citizens should get their wants fulfilled.

making sure entrepreneurs always have their needs fulfilled.

preventing any group of citizens from fulfilling all of its wants.

They get rid of the trade-offs associated with economic choices.

They make it more difficult for people to make economic choices.

They eliminate the need for a cost-benefit analysis of economic choices.

They offer benefits for making certain economic choices.

making certain choices more beneficial than others.

removing the opportunity costs of making a decision.

making it easier to perform a cost-benefit analysis of a decision.

reducing the marginal benefits for a particular choice.

eliminating opportunity costs for that choice.

subjecting that choice to a cost-benefit analysis.

providing extra benefits for making that choice.

increasing the marginal costs associated with that choice.

A restaurant offers new customers discounted rates in order to attract more loyal customers over time.

A factory increases wages for its workers but does not have enough money left over to invest in new machinery.

A business owner performs a cost-benefit analysis to decide on a price for his newest product.

A retailer decides to stop selling a certain brand of electronics because it has been in low demand.

Opportunity Cost

Marginal Cost

Marginal Benefit

Incentive

A restaurant offers new customers discounted rates in order to attract more loyal customers over time.

A factory owner performs a cost-benefit analysis to decide on a wage for her newest employees.

An auto dealership decides to stop selling a certain brand of truck because it has been in low demand.

A company invests in new cell phone technology but does not have money left over to invest in new computers.

its marginal costs are likely to be greater than its benefits.

its potential benefits seem to be greater than its costs.

it comes with a lot of major opportunity costs.

it requires the person to give up a lot of value in trade-offs.

It eliminates the opportunity costs associated with a decision.

It allows a decision to be made without considering any trade-offs.

It shows whether a decision will produce more gains than losses.

It creates additional incentives to promote a particular decision.

eliminates the opportunity costs associated with a decision.

encourages particular decisions through the use of incentives.

increases the marginal benefits and reduces the marginal costs of a decision.

helps balance the positive and negative consequences of a decision.

the government placing some regulations on private businesses.

private companies operating without government interference.

people relying on customs to make economic decisions.

the government directly controlling the production and sale of goods.

the government placing some regulations on free businesses.

private companies operating without government interference.

people relying on customs to make economic decisions.

the government directly controlling the production and sale of goods.

the government directly controlling the production and sale of goods.

the government placing some regulations on free businesses.

private companies operating without government interference.

people relying on customs to make economic decisions.

Command Economy

Market Economy

Traditional Economy

Mixed Economy

Command Economy

Traditional Economy

Market Economy

Mixed Economy

Market Economy

Mixed Economy

Command Economy

Traditional Economy

A parent teaches a child to farm using centuries-old techniques.

A corporation hires an engineer who has just graduated from college

A government agency assigns a laborer a job working in a factory.

A religious organization selects a young person to become a priest.

A parent teaches a child to farm using centuries-old techniques.

A corporation hires an engineer who has just graduated from college.

A government agency assigns a laborer a job working in a factory.

A religious organization selects a young person to become a priest.

A corporation hires an engineer who has just graduated from college.

A parent teaches a child to farm using centuries-old techniques.

A government agency assigns a laborer a job working in a factory.

A religious organization selects a young person to become a priest.

Economies that are based on free trade will always be unstable.

Economic growth should be carefully guided by governments.

Economic problems mostly result from the struggle between classes.

Economies work best when governments leave businesses alone.

Free market economies give the wealthy too much economic power.

Command economies will fail due to low levels of productivity.

Economies are most efficient when businesses can act freely.

International trade is a dangerous destabilizing factor for an economy.

Economies that are based on free trade will always be unstable.

Governments should play a larger role in solving economic problems.

Economies work best when governments leave businesses alone.

Businesses should be owned and controlled by organizations of workers.

Adam Smith

Karl Marx

Milton Freidman

John Maynard Keynes

Milton Friedman

John Maynard Keynes

Karl Marx

Thomas Robert Malthus

Adam Smith

Karl Marx

Milton Friedman

Jean Baptise-Say

economic decisions made mainly to promote fairness.

limited competition between a small number of companies.

limits on the government's role in the economy.

restrictions on the types of available consumer goods.

freedom for companies to produce the products they want.

economic motivations based on a desire to promote equality.

government control over most sectors of the economy.

a small number of companies put in charge of economic decisions.

government control over economic decisions.

many companies competing for customers.

strict limits on the types of goods available.

economic decisions motivated by fairness.

take risks when starting new businesses.

regulate companies in important industries.

decide on fair pricing for consumer goods.

settle disputes between competing businesses.

setting fair prices for new goods in different industries.

preventing businesses from stealing intellectual property.

bringing new products and services to consumers.

settling disagreements between competing businesses.

maintain economic equality by controlling the prices of consumer goods.

help money flow through the economy by starting new businesses.

protect consumers by regulating the economic behavior of businesses.

promote innovation by punishing companies that steal intellectual property.

businesses are free to sell their products at the prices they choose.

governments have more influence over property being bought and sold

consumers are able to freely use intellectual property from any business.

courts are able to force companies to sell property at fair prices.

it ensures that businesses sell products at fair prices.

it gives the government the ability to regulate businesses.

it makes more money available for starting new companies.

it allows entrepreneurs to profit from their ideas.

help governments set prices for essential products.

prevent companies from stealing ideas from innovators.

prevent the courts from interfering with private business.

ensure that all companies benefit equally from new ideas.

gaining experience in many different jobs.

mastering a small number of job skills.

traveling to different countries for work.

becoming a self-sufficient business owner.

producing a small number of products very efficiently.

creating and selling a huge variety of different products.

selling products in both foreign and domestic markets.

eliminating the division of labor among employees.

ensuring that the country can be economically self-sufficient.

reducing the long-term economic effects of voluntary exchange.

deciding which companies will be allowed to operate.

producing only the goods that can be made most efficiently.

Businesses create a division of labor to let employees use their specialized skills.

Businesses increase their opportunity costs to prevent financial losses.

Businesses strive for self-sufficiency and reduce exchange with other companies.

Businesses expect employees to perform a greater variety of job tasks.

Opportunity costs for trade rise as businesses are slow to change.

Labor becomes more divided as workers focus on certain skills.

Self-sufficiency becomes more important as many businesses shut down.

Voluntary exchange declines as fewer countries can trade internationally.

a rise in opportunity costs associated with trade and exchange

an increase in self-sufficiency due to businesses entering more markets.

a decline in wages for employees as businesses shut down in large numbers.

a growing division of labor between employees with different skills.

countries can become less economically self-sufficient.

countries are less likely to experience a division of labor.

countries become less reliant on voluntary exchange with others.

countries become likely to produce a wide range of products.

countries are less likely to experience a division of labor.

countries benefit from increased voluntary exchange.

countries become more economically self-sufficient.

countries produce a much wider range of different goods.

countries can focus on efficiently producing a small number of goods.

countries become less reliant on voluntary exchange with others.

countries produce a much wider range of different goods.

countries are less likely to experience a division of labor.

its efficiency in producing a good or service.

the total cost for running the business.

the amount of capital investment it requires.

its history of developing high-quality products.

operate without much investment.

produce goods and services efficiently.

expand without taking on debt.

avoid high opportunity costs.

paying too much to secure investments.

designing its production possibilities curve.

efficiently making the goods it sells.

selecting which economic trade-offs to make.

Companies with high levels of productivity are the most likely to need investment.

Companies must choose between high levels of productivity and large investments.

Companies use investments to avoid the need to increase overall productivity.

Companies use investments to pay for services that improve their productivity.

Companies with poor productivity use investments to become more efficient.

Companies use investments to reduce their need for high levels of productivity.

Companies with high levels of productivity never need to worry about investment.

Companies use investments to reduce the opportunity cost of low productivity.

Companies use investments to avoid having to improve productivity.

Companies improve their productivity using money from investments.

Companies with low levels of productivity have no need for investment.

Companies decide on their level of productivity based on their investments.

Economic growth increasing leads to productivity increasing

Economic growth increasing leads to productivity decreasing

Economic growth decreasing leads to opportunity costs increasing

Economic growth decreasing leads to opportunity costs decreasing

Economic growth decrease leads to opportunity costs decreasing

Economic growth increasing leads to productivity increasing

Economic growth increasing leads to capital investment decreasing

Economic growth decreasing leads to prodictivty increasing

Opporunity cost increases

Capital investment decreases

Productiivty increases

Producitivty decreases