Cockrill Unit 4 - Economy Vocabulary / Study Guide

What is the definition of Agriculture?

• An industry that takes raw materials from the earth and makes them into products (farming)

• A process of manufacturing electronic devices

• A system for distributing goods to consumers

• A method of producing energy from fossil fuels

What is Free Enterprise (Capitalism)?

• Economy driven by profit and competition (businesses and individuals compete for profit with minimum government interference)

• Economy controlled entirely by the government with no private ownership

• Economy based on communal sharing and equal distribution of resources

• Economy where all businesses are owned by the state and profits are distributed equally

What are Factors of Production?

• The way resources are gathered in order to produce goods and services

• A type of government policy

• A method of transportation

• A form of entertainment

What is Industrialization?

• The development of industries using machine production of goods

• A process of increasing agricultural output using manual labor

• The decline of cities and growth of rural areas

• The study of ancient civilizations

What is Gross Domestic Product (GDP)?

• The total goods and services produced in a country

• The total imports and exports of a country

• The total population of a country

• The total amount of money in circulation

Fill in the blank: __________ is the way a society makes, buys, and sells their goods and services.

• Economy

• Culture

• Geography

• Government

Fill in the blank: __________ is the amount of something producers have available to sell.

• Supply

• Demand

• Price

• Revenue

Fill in the blank: __________ is the amount of a good or service that consumers are willing and able to buy.

• Demand

• Supply

• Price

• Revenue

Fill in the blank: __________ is an economic system in which the government controls a country’s economy.

• Command Economy (Communism)

• Market Economy (Capitalism)

• Mixed Economy

• Traditional Economy

Fill in the blank: __________ is an economic system with characteristics of a market and command economy.

• Mixed Economy (United States)

• Traditional Economy

• Pure Market Economy

• Command Economy