Vocabulary
What is the definition of production?
Making or producing something of value
In a command economy, who makes the decisions and owns the resources?
Why do we need money to be scarce?
What is one way to increase productivity?
Which vocabulary word means to trade goods and services for other goods and services?
barter
In which economic system do customs and traditions guide the decisions?
traditional economy
What does "store of value" mean?
It means to save money, since money keeps its value when it is saved or stored.
What is one effect increased productivity have on consumers?
lower prices, more choices
to distribute resources
In which economic system to individuals and businesses make the decisions and own the resources?
market economy
Name 3 of the 6 characteristics of money.
portable, acceptable, durable, scarce, divisible, uniform
Which of the following would NOT be useful as money because of its divisibility?
A. salt
B. grain
C. house
D. peppercorn
What is it called when we use something that has value as a good, also as money?
commodity money
Which type of economy do most societies have?
mixed economy
Why do people, groups, or cultures sometimes need to use commodity goods instead of money?
Money isn't available or is too scarce
What is the difference between a craftsperson and a specialist?
A craftsperson makes the entire product themselves. A specialist helps with one part of the production process.
What is the definition of economic system?
the way a society organizes itself to determine what to produce, how to produce, and for whom to produce
What are the three economic questions all societies must answer?
What to produce?
How to produce?
For whom to produce?
What are the 3 functions of money?
When money is used to compare prices, it serves as a...
unit of account