The U.S. Economy

Economics Test Recap

​

​There are 3 types of economic systems

​1. Communist = most government control

​2. Socialist

​3. Free Enterprise = least government control

Multiple Choice

In what type of economy does the government control every part of the economy?

• Free enterprise

• Democracy 

• Socialist

• Communist

Multiple Choice

In what type of economy does the government have some control and there are also some private businesses?

• Free enterprise

• Command

• Socialist

• Communist

Multiple Choice

In what kind of economy do private businesses exist with little or no government control?

• Constitutional

• Free enterprise

• Socialist

• Communist

​Profit

​Financial gain

Multiple Choice

In which kind of economy can producers make the most profit?

• command

• Free enterprise

• socialist

• communist

​Competition

​To gain or win something

Multiple Choice

In which kind of economy is there no competition because the government runs all businesses?

• Democracy

• Free enterprise

• Socialist

• Communist

Multiple Choice

What are the benefits of business competition?

• More power is given to the government, less freedoms

• More products can be made with less variety

• Better products are made, more choices for buyers

• All business will become equally wealthy

​Economic Freedom

​Ability for people to make decisions and earn rewards from economic activities.

Multiple Choice

In which kind of economy is there the most economic freedom?

• Command

• Free enterprise

• Socialist

• Communist

​Private Property

​Land or belongings owned by a group

Multiple Choice

In which kind of economy is there no private property?

• Capitalist

• Free enterprise

• Socialist

• Communist

Multiple Choice

In many Communist economies, the government sets quotas. Quotas are-

• A fixed number of something that must be made or sold

• Famous saying from philosophers

• The amount of money each citizen has

• The requirements people must meet to vote

​Quota

​Limited or fixed number that must be met

Multiple Choice

What is another term for "Free enterprise economy"?

• Command economy

• Business economy

• Free market economy

• Communist economy

Multiple Choice

What is another term for "Communist economy"?

• Free enterprise 

• Socialist

• Command

• Dictator 

​Synonyms

​Free enterprise economy = free market economy

​

​

​

​Communist economy = Command economy

Multiple Choice

Who benefits most in a Communist economy?

• The people

• The government

Multiple Choice

Who benefits most in a Free Enterprise economy?

• The people

• The government 

Multiple Choice

What kind of economy does the U.S. have?

• Free enterprise

• Socialist

• Limited

• Communist

Economic Decision Making ​

​

Multiple Choice

The resources that people use to produce goods and services are called-

• global interdependence

• human environment interaction

• factors of production

• culture traits

Multiple Choice

Man-made items such as tools, factories and machines are called-

• natural resources

• capital goods

• labor

• entrepreneurship

Multiple Choice

Which is an example of a natural resource?

• machine

• cotton

• hammer

• table

​Factors of Production

​Land/natural resources - items found in nature like oil or cotton

​

​Labor - human work

​

​capital goods - man-made items like tools

​

​entrepreneur - person responsible for organizing the labor and resources to make a product

​Supply and Demand

​The price of a good rises or falls depending on the demand and the amount (supply) that is available

Multiple Choice

When supply decreases, what happens to the demand?

• Increases

• Decreases

• remains constant

Multiple Choice

When supply increases, what happens to the price?

• It increases

• It decreases

• It stays contstant

Multiple Choice

When COVID first came to the U.S., the demand for sanitizer ____ and the supply ____.

• Increased, decreased

• Decreased, increased

• Increased, increased

• Decreased, d

Multiple Choice

When supply of sanitizer decreased and demand increased, what happened to the price?

• Increased

• Decreased

• Remaind the same

​

​When supply decreases, demand and price increase.

Multiple Choice

For a long time, hand sanitizer and cleaning products were scarce. What does "scarce" mean?

• Afraid

• A large amount

• In short supply

• Inexpensive

​Scarcity

​In short supply; shortage

​

​When there is a large supply, price and demand decrease

Multiple Choice

If drought destroys the wheat crop, the price of wheat-

• Increases

• Decreases

Multiple Choice

If a new version of xbox comes out, the price of last year's model will-

• Increase

• Decrease

Multiple Choice

Goods that are shipped to other countries are called-

• Ports

• Exports

• Imports

• Ag

​Trading Vocab

​Import - materials, goods and services bought from other countries

​

​

​Export - materials, goods and services sold to other countries

Multiple Choice

The U.S. trading with Mexico is an example of-

• culture traits

• supply and demand

• labor

• global interdependence

​Global interdependence

​the way countries depend on each other to supply goods and raw materials.

​

​We need to trade because resources are not evenly distributed!

Multiple Choice

Why must countries depend on one another by trading?

• The government of each country requires it

• Resources are unevenly distributed

• To make sure all countries have the same amount of money

​Types of Economic Activities

​

​Service Industry

​An industry that provides a service rather than a product.

​

​Example: nurse, Uber driver

​Agriculture

​Production of crops, dairy products, poultry or livestock for commercial sale

​Manufacturing

​An industry that makes products from raw materials with manual labor or machinery

​Retail

​the selling of merchandise and services to consumers

Multiple Choice

Growing cotton is an example of what type of economic activity?

• retail

• manufacturing

• agriculture

• service

Multiple Choice

Building car parts is what kind of economic activity-

• farming

• service

• retail

• manufacturing

Multiple Choice

A nurse has a job in which kind of economic sector?

• service

• manufacturing

• farming

• retail

Multiple Choice

What kind of economic activity is working at Target?

• service

• agriculture 

• manufacturing

• retail