U1 Political & Economic Systems Review

What is one problem that occurred as a result of the command economy in the Soviet Union?

• shortages

• distribution increased too quickly

• they grew too many potatoes

• production increased slowly

How is the price of an item affected by low consumer demand and a large supply of the item?

• the price will decrease

• the price will increase

• the price will stay the same

• services will fail

Economic decisions are made by individuals as opposed to the government.

• market economy

• command economy

• common purpose of government

• factors of production

How is the price of an item affected by high consumer demand & low supply?

• the price will increase

• the price will decrease

• no change in price at all

• services will fail

Government decides what will be produced, how much will be produced, & how much goods & services will cost

• command economy

• import

• market economy

• natural resources

an organized way a society uses to produce, distribute, and consume goods and services

• economic system

• profit

• natural resources

• political system

workers and their abilities, talents, training, skills, and knowledge, used to produce goods or services

• human resources

• capital resources

• natural resources

• market economy

any physical environmental item that people perceive to be useful

• human resources

• capital resources

• natural resources

• market economy

equipment or goods that are used to produce other goods and services

• human resources

• capital resources

• natural resources

• market economy

the basic economic problem because people have unlimited wants but have limited resources

• scarcity

• factors of production

• human systems

• economics