Unit 1 Economic Systems Assessment

What are the roles of markets (places where goods & services are exchanged) and prices (how much those goods & services cost) in the U.S.economy? Select all that apply

• Markets are where buyers and sellers meet to exchange goods and services. They help determine how resources are used.
• Prices are set by the government, telling us how much demand there is for a product and how much of it is available.
• Changes in price help balance out supply and demand, keeping the market in equilibrium.
• Suppliers are the only driving force in setting the prices for goods and services

What are three factors that affect economic health of a country?

Supply is how much of a product producers are willing to sell at different prices. Demand is how much of a product consumers are willing to buy at different prices. Please provide your understanding on supply & demand in your own words.

What do we call the cost of the next best alternative foregone (what is given up) when making a decision?

• Scarcity
• Opportunity Cost
• Economic Systems
• Market Prices

Which of the following is a reason businesses exist?

• To reduce options for consumers to shop
• To satisfy customers needs & wants
• To create a monopoly
• To minimize profits & maximize costs

Globalization facilitates the flow of goods, services, capital, and labor across borders.

• True
• False

What are basic features of the four different economic systems?

Define imports & exports in your own words.

What are tariffs?

What is the term used when a country can make a product more superior than it's competitor?

• Absolute Advantage
• Comparitive Advantage
• Opportunity Cost
• Scarcity