Econ Basics
A(n) _______________ is a system of producing, selling, and buying goods and services.
economy
A company cuts down trees from a forest to make paper and cardboard. The trees are an example of this factor of production: ________.
Natural resources
In a ____________ economy, prices are determined by the supply and demand for goods.
market
In ____________ industries, people use natural resources and raw materials to make other products. Manufacturing industries are an example.
Secondary
In a __________ economy, the government owns basic industries (like electricity, health care, or communications) while other businesses are private.
socialist
You decide to spend your birthday money on a new phone, rather than going on a ski trip. What is the opportunity cost of this decision?
the ski trip you didn’t go on
A landscaping company uses equipment like lawn mowers, leaf blowers, and trailers to complete their jobs. These machines are examples of ________ goods.
Capital goods
In a __________ economy, decisions are based on long-held customs and survival.
traditional
In ____________ industries, people take natural resources directly from the Earth, such as mining, farming, or fishing. These industries supply raw materials to other industries.
primary
What are the 3 most common types of mixed economies?
capitalist, communist, socialist
Make sure to answer BOTH #1 and #2:
(#1) _________ is the desire to have a good or service and the number of people who are ready to buy it at a certain price.
(#2) __________ is the amount of a good or service that businesses are willing and able to produce.
#1 - Demand
#2 - Supply
Construction workers use their time, effort, and skills to build a new house. This is an example of what factor of production?
Labor
A _________ economy is a system based on private ownership, free trade, and competition.
market
In ____________ industries, people focus on research, information, and knowledge rather than physical goods. Examples include librarians, computer programmers, and scientists.
quaternary
In a ____________ economy, the government owns the factors of production and makes all economic decisions. North Korea and Cuba are examples.
communist
Economic ______________ is when one nation relies on another to provide goods or services the country doesn’t produce.
interdependence
What are the 4 factors of production?
Natural resources, capital, labor, entrepreneurs
In a ____________ economy, the government decides what goods are produced, how much is produced, and the prices people pay. (Also called a centrally-planned economy)
Command
In ____________ industries, people provide goods and services to customers. This includes wholesale, retail, and service industries.
tertiary
In a __________ economy, individuals and businesses own the factors of production, make most economic decisions, and are free to start and run their own businesses.
capitalist
A person opens a new bakery, hires workers, buys equipment, and risks their own money. This is an example of what factor of production?
Entrepreneurs
What are the 3 basic types of economic systems?
Command
Traditional
Market
What are the 4 levels of industry? (try your best with spelling)
Primary
Secondary
Tertiary
Quaternary
By the 1990s, many communist nations switched from command to market economies. What is one reason they made this change?
Possible answers:
Workers had little incentive to work hard
Shortages of food
Central planners had too many decisions/little understanding of local conditions