Economic System
Key Terms
Supply and Demand
Income
What If?
100
True or False The United States has a traditional economy.
False
100
What is profit?
Money left after all the costs of production have been paid.
100
What is supply?
Supply- The amount of a good or service that producers are able and willing to sell at different prices during a specific time period.
100
What is the defenition of income?
The money when people work.
100
What are the six topics of What If the United States didn't have free enterprise?
Entertainment Government Income/Jobs Personal Lives Restaurants Retail
200
What is an economic system?
A way in which a nation uses its resources to satisfy its people's needs and wants.
200
What is competition?
Rivalry among producers or sellers of similar goods and services to win more business.
200
What is demand?
The amount of a good or service that consumers are able and willing to buy at various possible prices during a specific time period.
200
Is building a house have to do anything with income?
Yes
200
What would the government do if you invented something in a country that doesn't have free enterprise?
The government would claim it and keep any money made from it.
300
Who has control over a country's economy in a command economy?
Government
300
What is profit incentive?
Desire to make money that motivates people to produce and sell goods and services.
300
What is the difference between the law of demand and the law of supply? (quantity demanded and quantity supplied is not an answer)
Quantity demanded and price move in opposite directions in the law of demand while price and quantity supplied move in the same direction in the law of supply.
300
True or False an advantage of working for others is not worrying about payroll.
True
300
True or False In a society where there is no free enterprise the people would have a lot of choices of movies to watch.
False
400
What are the three basic questions that every economic system must answer?
What should be produced? How should it be produced? For whom should it be produced?
400
What is disposable income?
Income remaining for a person to spend or save after all taxes have been paid.
400
List the determinants of demand? (Only five)
Changes in: 1. Population 2. Income 3.Tastes and Preferences 4. Substitutes 5. Complementary Goods
400
Which of the following is not a disadvantage. a)dealing with other employees b)people telling you what you can't and can do c)working only 40 hours a week
c) working only 40 hours a week
400
In a non-free enterprise society who would choose what type of work you would do for a living?
The government would choose.
500
What are the six major characteristics of a pure market economy?
1. Little/no government control 2. Freedom of Enterprise 3. Freedom of Choice 4. Private Property 5. Profit Incentive 6. Competition
500
What is consumerism? What are the four consumer rights?
Movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers. 1. Right to Safety 2. Right to be Informed 3. Right to Choose 4. Right to Redress
500
What are three risks of entrepreneurs?
Inadequate Financing Management Shortcomings Misreading the Market
500
Would starting a Clothing Boutique have to do with owning one's own business?
Yes
500
What are two disadvantages of the government controlling all retail businesses?
1. Lack of choices 2.Prices set by government
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