Civics - Ch 19 Test Review

A movement to educate buyers about the purchases they make and to demand better and safer products from manufactures.

• Ethical consumerism movement
• Consumerism

• Product safety initiative
• Consumer protection agency

What is Economic Interdependence?

• Economic interdependence is a reliance on others, as they rely on you to provide goods and services to be consumed.

• Economic interdependence means countries compete without any cooperation.
• Economic interdependence is the isolation of economies from global trade.
• Economic interdependence refers to a country's self-sufficiency in resources.

What is specialization?

• Specialization is when people, businesses, regions, and/or nations focus on goods and services that they can produce better than anyone else.

• Specialization is the process of avoiding any specific area of focus.
• Specialization refers to the ability to multitask effectively.
• Specialization is the act of generalizing skills across multiple fields.

What are the four factors of production?

• Natural Resources

• Labor

• Capital

• Entrepreneurs

• Buyers

Select all that are natural resources.

• Land/forests

• Rainfall

• Mineral deposits

• Electricity

What are factors that have historically had a dramatic impact on both the quantity and quality of labor? Select all that apply.

• Population Growth

• Education

• War

• Disease

• Immigration

Classify the items below as either examples of labor or examples of capital.

Groups:

(a) Labor

,

(b) Capital

• Buildings

• Machines

• Carpenters

• Maids

• Tools

• Teachers

How are capital goods unique?

• Capital goods are primarily used for personal consumption.
• They are the result of production.

  (Ex: You cannot find a hammer in the forest like you would a tree. A hammer has to be made for it to exist.)

• Capital goods are always tangible items that cannot be reused.
• Capital goods are only relevant in the service industry.

What is the difference between consumer goods and capital goods?

• Consumer goods are always more expensive than capital goods.
• Consumer goods are used for production; capital goods are for direct consumption.
• Consumer goods are for direct consumption (ex: clothes); capital goods are used for production (ex: hammer).

• Capital goods are only used in the service industry.

​ (a)   are often thought of as the driving force in the American economy because they use the factors of production to produce new products.

• Entrepreneurs
• Government agencies
• Non-profit organizations