Econ SLO 2019

A company wants to make sedans, sports cars, and vans in its factory, but does not have the capability to produce all three types of vehicles. What is the trade-off called if the company

makes only sports cars?

• monopoly

• slowdown

• opportunity cost

• capital resource

Which scenario is an example of a monopoly?

• A local water company is the sole provider of water for a small town.

• A farmer produces green beans for sale at a farmers’ market.

• A small number of cereal companies produce most of the cereal on the market.

• A dry cleaner specializes in environmentally friendly cleaning methods.

Which of the following best completes this list?

Major Factors That Influence a Market Economy

• Capital

• Unrestricted trade

• ______________

• Contract law

• Interest rates

• Labor unions

• Competition

Sam Walton founded Wal-Mart in 1962. He bought large quantities of goods and sold them at discounted prices with a focus on customer service. Walton opened stores all over the world.

What was one effect of this business model?

• Imported goods increased in quality and price.

• Federal agencies implemented antitrust legislation.

• Individual retailers had difficulty competing.

• Governments increased control of trade and industry.

What is Capitalism?

• A system where the government controls business
• Capitalism is an economic system where the means of production are privately owned and operated for profit! 
• A economic system in which the people have limited rights
• An economic system in which most property and resources, such as factories or farms, are publicly owned or controlled.

______________get to make the economic decisions under capitalism.

• Individuals
• Government
• Literally no one
• The President 

Laissez-faire means...

• Hats off
• Hands around
• Hands off
• Hands on

In a socialist economy, the wealth is distributed evenly among citizens.

• True
• False

The United States is an example of what economic systems?

• Capitalism

• Socialism

• Traditional

• Communism

What is a key difference between capitalism and communism?

• Private Property is allowed in Capitalism
• Communism allows for a free market
• Capitalism, in theory, spreads the wealth evenly
• Communism encourages entrepreneurship