Strand IV Recap

Match the following

• Production

• The making of goods and services.

• Opportunity Cost

• The using of goods and services.

• Consumption

• What is given up when a choice is made.

• Scarcity

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

• Choice

• Making a selection from a set of alternatives.

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

• Natural

• 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.

• Capital

• The labor and skill 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

• What will the price be of what is produced?

• For whom will it be produced?

• How much will it cost to be produced?

• How will it be produced?

• What will 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

• Government in charge

• Form of economy in the United States

• Owned and planned centrally.

• Little to no choice

• Little to no government involvement

• Based on custom and historical precedent

• Most popular form of economy

• Shared decision-making between government and people

• Consumers in charge

• Based on competition and consumer sovereignty

• Very simple form of economy

• Very limited form of economy

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

• government involvement
• taxes
• income
• population size

Match the following

• Free Enterprise

• Consumers determine what is made based on what they buy

• Private Property

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

• Competition

• Earnings after a business has paid all expenses.

• Profit / Profit Motive

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

• Consumer Sovereignty

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

(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

• Entrepreneur

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

• Proprietorship

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

• Partnership

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

• Corporation

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

Place the following under the correct headings for the economic flow

Groups:

(a) Individuals

,

(b) Businesses

,

(c) Government

• Buy goods and services from businesses with their income

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

• Buy resources including labor from individuals.

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

• Sell goods and services to the government and individuals.

• Provide public goods and services.

• Buy goods and services from businesses using taxes.