Vocabulary
Money to start and operate a business
capital
Sweden has a socialist economy; therefore Swedes pay low taxes on income.
False
Ref: pg 66
What is the purpose of the activities in a traditional economy?
a. to make profits
b. to increase the GDP
c. to provide food, shelter, and clothing
d. government control
c. to provide food, shelter, and clothing
A government can sell state-owned assets to private individuals in a process called _______________.
privatization
Japan has a(n) _________________ economy with a democratic for of government.
capitalist
Period when prices rise
inflation
A country's infrastructure includes its roads, ports, sanitation facilities, and utilities.
True
Ref: pg 61
In a command economy, who decides how products are produced?
a. businesses
b. consumers
c. government
d. labor
c. government
As a phase in the business cycle, a(n) ______________ is a period of economic slowdown that lasts at least two quarters or six months.
recession
Ya-Hui Chan operates a catering business. Her ovens, the flour and other food supplies, and the money she used to start her business are all examples of the _____________ factor of production.
capital
All things used in producing goods and services
resources
Labor is a factor of production that includes both skilled and unskilled workers.
True
Ref: pg 61
Which economy would best describe the U.S. economy?
a. mixed economy
b. traditional economy
c. market economy
d. command economy
a. mixed economy
The _______________ decides the type of education children will receive in a communist economy.
Measurement of the amount of goods and services people have
standard of living
Scarcity of resources forces nations to make economic choices.
True
In economic terms, land, labor, and capital refers to
a. infrastructure
b. scarcity
c. factors of production
d. free enterprise system
c. factors of production
A tree growing in a forest is a factor of production called __________________.
land
During a period of _______________, consumer spending is very low, and unemployment is very high for a prolonged period of time.
depression.
Each part of a finished product is completed by a person
specialization
In a market economy, individual consumers decide what items will best satisfy their wants and needs.
True
What is the term for organized way in which a nation provides for the needs and wants of its people?
a. capital
b. resources
c. purely command
d. economy
d. economy
During a(n) __________________, there is a period of renewed economic growth.
recovery
________________ refers to the skills of people who are willing to invest their time and money to run a business.
Entrepreneurship