| Frage | Antworten |
| Process in transforming goods into usable forms | Production |
| 3 factors of production | land labor capital |
| 3 basic economic questions | What to Produce? How to Produce? For whom to Produce? |
| The society must know the people's needs in order to satisfy their needs and wants | What to Produce |
| Refers to the mode of production used | How to Produce? |
| Manual Labor | Labor-Intensive Mode |
| Involves Machinery and tools | Capital-Intensive Mode |
| Its concern is how it will be distributed among the members of the society | For Whom to Produce |
| Set of social institutions that aim to answer the three economic questions | Economic System |
| 4 types of economic system | Traditional Economy Command Economy Market Economy Mixed Economy |
| It is based on how things are done in the past, Primitive | Traditional Economy |
| The government dictates what to produce, for whom to produce and how to produce | Command Economy |
| There is no intervention of the government A.K.A Laissez-faire | Market Economy |
| Price | Primary mechanism of exchange |
| There is an intervention of the government but at the same time there is freedom of choice | Mixed Market |
| Composed of individuals who exhibit certain needs and wants | Household |
| Organization that transform resources into products | Firms |
| Firms supply what the household demands | Output Market |
| Household supply what the firms demand | Input Market |
| Refers to natural resources | LAND |
| Composed of people who are involved in the production of goods and service | Labor |
| Composed of man-made that are used to produce other goods | Capital |
| Person who combines capital, land and labor and comes up with the product | Entrepreneur |
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