Strand IV Recap

Match the following

• Consumption

• The making of goods and services.

• Scarcity

• What is given up when a choice is made.

• Production

• The using of goods and services.

• Opportunity Cost

• Making a selection from a set of alternatives.

• Choice

• The inability to meet all wants and needs at the same time. Leads to choices.

Match the following types of resources (the things that go into producing a good or service)

• Natural

• The labor and skill that goes into production.

• Capital

• The money and items such as machines and location that go into production.

• Entrepreneurial

• The raw materials that we get from the Earth that go into production.

• Human

• The idea and risk that goes into production.

Place the following under the correct category

Groups:

(a) Questions All Economies Must Answer

,

(b) Not Questions Every Economy Must Answer

• For whom will it be produced?

• What will the price be of what is produced?

• How will it be produced?

• What will be produced?

• How much will it cost to be produced?

• What are the taxes on what is produced?

Organize these options into the right categories

Groups:

(a) Free Market

,

(b) Command

,

(c) Mixed

,

(d) Traditional

• Little to no choice

• Very simple form of economy

• Very limited form of economy

• Based on custom and historical precedent

• Shared decision-making between government and people

• Government in charge

• Based on competition and consumer sovereignty

• Owned and planned centrally.

• Most popular form of economy

• Form of economy in the United States

• Consumers in charge

• Little to no government involvement

The form of economy a nation has is based upon ​ (a)  

• government involvement
• taxes
• income
• population size

Match the following

• Consumer Sovereignty

• Markets are allowed to operate without too much influence by government.

• Profit / Profit Motive

• Consumers determine what is made based on what they buy

• Competition

• Earnings after a business has paid all expenses.

• Free Enterprise

• Rivalry between producers of a good or service leads to lower prices, higher quality, and more choices.

• Private Property

• Individuals and businesses may own things without too much government involvement.

(a)   is the amount of a good or service that a business will make based on price. ​ (b)   is the amount that consumers will buy based on price. The interaction of supply and demand determines ​ (c)   The price where supply and demand meets and profit is the highest is called ​ (d)  

• Supply
• Demand
• Price
• equilibrium price
• choice
• opportunity cost
• taxes

The Law of Supply states that as prices go up ​ (a)   ​ and as price goes down ​ (b)   The Law of Demand states that as prices go up ​ (c)   and as prices go down ​ (d)  

• supply goes up
• supply goes down
• demand goes down
• demand goes up

Match the following

• Proprietorship

• Type of business with one owner who takes all the risk and all the profit.

• Partnership

• Type of business with many owners who act as a legal person and where risk is limited to investment.

• Entrepreneur

• Type of business with two or more owners who share the risk and the profit.

• Corporation

• A person who is willing to take the risk and has the idea to participate in any of the three forms of business.

Place the following under the correct headings for the economic flow

Groups:

(a) Individuals

,

(b) Businesses

,

(c) Government

• Provide public goods and services.

• Sell goods and services to the government and individuals.

• Collect taxes from individuals and businesses on income and sales.

• Buy goods and services from businesses with their income

• Buy resources including labor from individuals.

• Buy goods and services from businesses using taxes.

• Receive income from businesses for selling their resource of labor.