ECON Unit 2 Warm-up

How does a country determine what goods/services should be produced/provided?

• What now?
• It's based on what consumers want
• By flipping a coin
• It's based on what consumers say on the phone

How are goods and services produced?

• By combining the factors of production
• By subtracting the factors of production
• What is a factor of production?
• The Federal Reserve decides what to make

Fill in the blank. The consumption (use of something) of the goods and services that are produced are determined by _______________________________________.

• what people want to buy
• what the people in charge tell us to buy
• by how a society distributes income
• by what is left whenever you get to the store

What are the three basic/key economic questions? (Select 3 answers)

• A. Who gets to consume it?
• C. What is produced?
• D. How is it produced?
• B. Why is it produced?
• E. When is it produced?

Label box #1

• Goods and Services Market
• Household/Consumer
• Factors Market
• Firms/Private Companies

Label box #2

• Goods and Services Market
• Household/Consumer
• Factors Market
• Firms/Private Companies

Label box #3

• Goods and Services Market
• Household/Consumer
• Factors Market
• Firms/Private Companies

Label box #4

• Goods and Services Market
• Household/Consumer
• Factors Market
• Firms/Private Companies

Who makes all the decisions in a centrally planned economy? ?

• A. Individuals
• B. Governments
• C. Entrepreneurs
• D. Cat people

In an AUTHORITARIAN command economy, there is no (or virtually no):

• A. Private Property
• B. Consumer Choice
• C. Freedom of speech
• D. All of the above are correct