Economics Study Guide

Front

An economic system based on customs, history, and traditions. Often has phrase, "that's the way we have always done it."

Back

Traditional

Front

Economic system where government controls the means of production. Has phrase "we do as we are told".

Back

Command

Front

Economic System based on private ownership or property and supply/demand determine the production of goods and services.

Back

Free-Market

Front

Which condition would lead an entrepreneur in Market economy to set the highest prices?

Back

There is a high demand from consumers, yet the supply is low

Front

Someone who makes a good or supplies a service

Back

producer

Front

Why did mass-production of the car allow everyone, not just the rich, to purchase it? (Think supply and demand)

Back

Mass-production increased the supply of cars and the price of cars dropped as a result.

Front

Which Economic System is being described? Options: Traditional, Command, Free Market, Goods

Back

Command

Front

Use the list to answer the question. This list describes characteristics of which type of government? Options: Socialism, Capitalism, Communism, Profit

Back

Communism

Front

What is most likely true about profit motive?

Back

It benefits an economy run on a free enterprise.

Front

When the price of gasoline goes up, what will the airlines do to continue to earn a profit?

Back

increase the prices of tickets