Chapter 2 quarantine

An example of a consumption good is ______;and an example of a capital good is ________.

Your iPad; the pizza oven at a pizzeria

The factor of production __________, and the factor of production _______.

land earns rent; labor earns wages

The factor of production ________, and the factor of production _________.

Capital earns interest; entrepreneurship receives a profit or incurs a loss.

When you buy a movie ticket, you are buying _________

A service

The factor of production most people supply is ________, and the income these perople earn is _______.

labor;a wage

Capital consists of __________

tools, instruments, machines, buildings, and other items that have been produced in the past and that busineses now use to produce goods and services

Expenditure on consumption goods and services flow from _____ through the _______ markets.

households to firms; goods

The "money flows" are ________.

factor incomes, household and government spending on goods & services, taxes, & transfers

When a country trades with other countries, we describe its economy as _____________.

an open economy

The "money flows" are _________.

factor incomes, household and government spending on goods & services, taxes, & transfers

When a country trades with other countries, we describe its economy as _________.

open economy

An economy is ________.

an area where the production and consumption of goods and services take place