Strand IV Recap

Match the following

• Opportunity Cost

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

• Production

• What is given up when a choice is made.

• Scarcity

• Making a selection from a set of alternatives.

• Choice

• The using of goods and services.

• Consumption

• The making of goods and services.

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

• Entrepreneurial

• The labor and skill that goes into production.

• Capital

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

• Natural

• 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

• How much will it cost to be produced?

• What will the price be of what is produced?

• What are the taxes on what is produced?

• How will it be produced?

• What will be produced?

• For whom will it be produced?

Organize these options into the right categories

Groups:

(a) Free Market

,

(b) Command

,

(c) Mixed

,

(d) Traditional

• Owned and planned centrally.

• Form of economy in the United States

• Consumers in charge

• Based on custom and historical precedent

• Most popular form of economy

• Shared decision-making between government and people

• Little to no government involvement

• Little to no choice

• Government in charge

• Very simple form of economy

• Very limited form of economy

• Based on competition and consumer sovereignty

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

• government involvement
• taxes
• income
• population size

Match the following

• Profit / Profit Motive

• Consumers determine what is made based on what they buy

• Private Property

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

• Consumer Sovereignty

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

• Free Enterprise

• Earnings after a business has paid all expenses.

• Competition

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

(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 two or more owners who share the risk and the profit.

• Proprietorship

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

• Corporation

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

• Partnership

• 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

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

• 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.

• Sell goods and services to the government and individuals.

• Provide public goods and services.