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WorksheetsHow Business and Economics Work
Total questions: 13
Worksheet time: 12mins
Define what is a business?
An organization that strives for a profit by providing goods and services desired by its customers.
The inputs, such as tools, machinery, equipment, and buildings, used to produce goods and services and get them to the customer.
Factors, such as technological or legal conditions, that prevent new firms from competing equally with an existing firm.
Define what is capitalism?
Inflation that occurs when increases in production costs push up the prices of final goods and services.
The movement of inputs and outputs among households, businesses, and governments; a way of showing how the sectors of the economy interact.
An economic system based on competition in the marketplace and private ownership of the factors of production (resources); also known as the private enterprise system.
Define what is communism?
An economic system characterized by government ownership of virtually all resources, government control of all markets, and economic decision-making by central government planning.
The movement of inputs and outputs among households, businesses, and governments; a way of showing how the sectors of the economy interact.
The combination of policies, laws, and choices made by a nation’s government to establish the systems that determine what goods and services are produced and how they are allocated.
What is an economic system?
People who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal.
The combination of policies, laws, and choices made by a nation’s government to establish the systems that determine what goods and services are produced and how they are allocated.
The total market value of all final goods and services produced within a nation’s borders each year.
What is economics?
People who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal.
The use of monetary policy by the Fed to increase, or loosen, the growth of the money supply.
The study of how a society uses scarce resources to produce and distribute goods and services.
What are the factors of production?
The government’s use of taxation and spending to affect the economy.
The resources used to create goods and services.
The use of monetary policy by the Fed to increase, or loosen, the growth of the money supply.
Define a mixed economy
An index of the prices paid by producers and wholesalers for various commodities, such as raw materials, partially finished goods, and finished products.
A government’s programs for controlling the amount of money circulating in the economy and interest rates.
Economies that combine several economic systems; for example, an economy where the government owns certain industries but others are owned by the private sector.
In capitalism, what happens to the ownership of a business?
Businesses are privately owned with minimal government ownership or interference.
Government owns all or most enterprises.
Private ownership of land and businesses but government control of some enterprises. The private sector is typically large
Who controls the market in communism?
Complete freedom of trade. No or little government control.
Complete government control of markets.
Some markets, such as nuclear energy and the post office, are controlled or highly regulated.
What is the worker incentive in communism?
Strong incentive to work and innovate because profits are retained by owners.
No incentive to work hard or produce quality products.
Give an example of a mixed economy country.
Give an example of a socialist country or a country that has socialism.
How are enterprises and businesses managed in socialism?
Each enterprise is managed by owners or professional managers with little government interference.
Significant government planning and regulation. Bureaucrats run government enterprises.
Centralized management by the government bureaucracy. Little or no flexibility in decision-making at the factory level.
