Unit 6: Economics Unit Review

Front

What problem results from the following two statements?
***People want more things than they have money to buy.
***The goods and services a society can produce at any one time are limited.

Back

Scarcity

Front

Which describes a society with a traditional economy?

Back

It is based on doing things the way they were done in the past.

Front

What is the central characteristic of a market economy?

Back

Business owners are motivated by a desire for profit.

Front

What do the command economies of Cuba and North Korea have in common?

Back

Government answers the fundamental economic questions.

Front

What effect does competition have on producers in a market economy?

Back

Producers improve the quality of their goods to increase sales.

Front

In a traditional economy, how is information about the way goods are made passed from one generation to the next?

Back

By the family.

Front

What is the role of the government in a command economy?

Back

It makes the most important economic decisions.

Front

Three statements are shown:
1. The desire for profits drives people to risk their time and resources.
2. Producers determine the supply of a product.
3. Consumers determine the demand for a product.
Which type of economy do these features describe? 

Back

A market economy.

Front

What do these two images have in common?

Back

The farmers are working in traditional economies.

Front

Being affected by the decisions or events your trading partners are involved in because you rely on them.

Back

Interdependence