Part 1: Key Terms- Match the concept with the letter that corresponds to the correct definition.
1. Factors of
Production
2. Command
Economy
3. Market
Economy
4. Invisible Hand
5. Circular Flow
6. Product Market
7. Resource Market
A. An economic system where individuals own the factors of production and
voluntarily exchange goods and services.
B. Where goods and services are sold by businesses and bought by
households.
C. Where resources, like labor, are sold by individuals and bought by
businesses.
D. The resources required to produce goods and services. This includes land,
labor, and capital.
E. An economic system where the government owns the factors of production
and dictates what is produced.
F. The idea that society's needs and wants are met as individual and private
businesses seek their own interests.
G. A model showing the interactions of households, businesses, and the
government.
mtanding. Answer the following questions.