Economics Unit 2 Test

Be able to identify and describe the following Economic Systems

• 1. - Traditional Economy

  2. - Command Economy

  3. - (Free) Market Economy

  4. - Socialism

  5. - Capitalism

  6. - Communism

  7. - Mixed Market Economy

• 1. - Economic Freedom

  2. - Economic Growth

  3. - Economic Efficiency

  4. - Economic Equity

  5. - Economic Security 

  6. - Economic Stability

• • - Specialization

  • - Economic Interdependence

  • - Absolute Advantage

  • - Comparative Advantage

  • - Circular Flow of Money

Be able to identify the Six  Economic Goals and their objectives

• 1. - Economic Freedom

  2. - Economic Growth

  3. - Economic Efficiency

  4. - Economic Equity

  5. - Economic Security 

  6. - Economic Stability

• • - Specialization

  • - Economic Interdependence

  • - Absolute Advantage

  • - Comparative Advantage

  • - Circular Flow of Money

• 1. - Traditional Economy

  2. - Command Economy

  3. - (Free) Market Economy

  4. - Socialism

  5. - Capitalism

  6. - Communism

  7. - Mixed Market Economy

Understand and be able to apply the following economic terms:

• 1. - Economic Freedom

  2. - Economic Growth

  3. - Economic Efficiency

  4. - Economic Equity

  5. - Economic Security 

  6. - Economic Stability

• • - Specialization

  • - Economic Interdependence

  • - Absolute Advantage

  • - Comparative Advantage

  • - Circular Flow of Money

• 1. - Traditional Economy

  2. - Command Economy

  3. - (Free) Market Economy

  4. - Socialism

  5. - Capitalism

  6. - Communism

  7. - Mixed Market Economy

What goes in the Yellow Box?

• Households sell the factors of Production, [Land, Labor and Capital.]

• Households pay for goods and services.

• Firms sell goods and services

• Firms pay for the factors of Production.

What goes in the red box?

• Households sell the factors of production [land, labor, and capital]

• Firms pay for the factors of Production.

• Firms sell goods and Services

• Households pay for goods and services

What goes in the Blue box?

• Firms sell goods and services

• Firms pay for the factors of Production.

• Households pay for goods and services

• Households sell the factors of Production [land, labor, and capital]

What is the title of the diagram in general?

(What goes in the Black Box?)

• Product Market

• Factor Market

• Circular flow Market of a Market Economy

What goes in the Pink Box?

• Factor Market

• Product Market

What goes in the White box?

• Factor Market

• Product Market

What goes in the Purple Box?

• Households

• Firms