History, Chapter 2, Lesson 2

What is labor?

• the ability of people to do work

• the act of running a business

• money and goods

• using knowledge in a practical way

How do we call the act of running a business and taking on the risks of it?

• labor

• resource

• entrepreneurship

• risk-taking

What is supply?

• the amount of a good/service that a producer wants to sell

• the amount of a good/service that a consumer wants to buy

What is demand?

• the amount of a good/service that a producer wants to sell

• the amount of a good/service that a consumer wants to buy

The price/amount of goods where the supply meets the demand is called...

e _ _ _ _ _ _ _ _ _ m (write the entire word)

What is scarcity of a product?

• when there is too much of it

• when there is a lack of it

• when its price is reasonable

Which type of economy is based on custom and traditions?

• command

• traditional

• free market

• mixed

In this type of economy, a central government decides what goods will be made and who will receive them.

• free market

• traditional

• command

• mixed

Which of the following countries has a command economy?

• USA

• Greece

• Japan

• North Korea

What is recession?

• a period of slow economic growth

• a period of fast economic growth

• when prices are rising

• a rise in people's incomes