Economic Theories Formative Assessment

What is Economics?

• The study of human efforts to satisfy seemingly unlimited wants through limited resources.

• The study of social life, social change, and the social causes and consequences of human behavior.

• The study of the physical features of the earth and its atmosphere, and the effects of human activity on it.

• A system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

An Economic System must make 3 major decisions, which of the answers below is not one of them?

• What and how much should be produced.

• How goods and services should be produced.

• Who gets the goods and services that are produced.

• Ensure that all goods and services are distributed equally.

Socialism is

• An Economic System focused on Public ownership of the means of production, and equal economic opportunity.

• An Economic System based on freedom of choice, which includes incentives for workers, investors, consumers and enterprises.

• A System which calls for the working class to rise up and overthrow the system in order to achieve equality.

• A System that is based on the identification with one's own nation and support for its interests, especially to the exclusion or detriment of the interests of other nations.

Capitalism is

• An Economic System focused on Public ownership of the means of production, and equal economic opportunity.

• An Economic System based on freedom of choice, which includes incentives for workers, investors, consumers and enterprises.

• A System which calls for the working class to rise up and overthrow the system in order to achieve equality.

• A System that is based on the identification with one's own nation and support for its interests, especially to the exclusion or detriment of the interests of other nations.

Communism is

• An Economic System focused on Public ownership of the means of production, and equal economic opportunity.

• An Economic System based on freedom of choice, which includes incentives for workers, investors, consumers and enterprises.

• A System which calls for the working class to rise up and overthrow the system in order to achieve equality.

• A System that is based on the identification with one's own nation and support for its interests, especially to the exclusion or detriment of the interests of other nations.

In this economy, the value of goods fluctuates greatly and as a company you must continue to produce quality goods, or risk being out of business.

• Capitalism

• Socialism

• Communism

In this economy farmers are provided with land and equipment and told which crops to plant, and the distribution of those crops is determined by the government.

• Capitalism

• Socialism

• Communism

In this economy, the government produces it’s signature crab flavored soft drink and determines that it will be sold for $1.25 in all stores.

• Capitalism

• Socialism

• Communism