Economic Vocabulary and Systems Review (CE.11a-b)

Resources

100

Land, water, trees, and oil are examples of ____________ resources.

What is the definition of this type of resource?

natural

something that comes from the earth

200

Construction workers, factory workers, doctors, and lawyers are examples of ________________ resources.

What's the definition of this type of resource?

human

a person's labor/work

300

Machines, tools, factories, and trucks are examples of _____________ resources.

What is the definition of this type of resource?

capital

manmade tools

400

A girl scout sells cookies outside of a college library during finals week. She makes hundreds of dollars. What type of resource is this?

What is the definition of this type of resource?

entrepreneurship

business skills/traits

500

Give an example of all four resources being used to make a single good or service.

answers will vary

Choices

100

What is the inability to satisfy all wants at the same time?

scarcity

200

What we give up when we make a choice is known as

opportunity cost

300

Factors of production that are used to make goods and services are known as

resources

400

All resources and goods are _____________, so we are forced to make ____________.

limited; choices

500

Isabel decides to save for college instead of spending her money on a car. What are THREE examples of opportunity cost from this choice?

By choosing to save, she is losing

-the chance to have a car

-the ability to buy anything right now

-the independence of being able to drive herself anywhere

Answers may vary

Vocabulary

100

What is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services?

Production

200

What is combining resources to make something?

Consumption

300

Another word for someone who buys something is

consumer

400

What are consumer preferences?

What people are willing or not willing to buy

Example: Many people are willing to buy a Playstation 5. Not many people are willing to buy an XBox360.

500

Describe a scenario where a choice is made, and explain the opportunity costs that come from that choice.

Answers will vary

Economic Systems

100

What type of economy is based on custom and historical precedent, which means performing same type of work as parents/grandparents?

Traditional Economy

200

What type of economy includes private ownership; profit motive; competition; consumer sovereignty; individual choice & minimal govt involvement?

Free Market Economy

300

What type of economy has central ownership, centrally planned economy, and lack of consumer choice?

Command Economy

400

What type of economy has owners and decision makers for private sector, and government as the owner and decision maker for public sector?

Mixed Economy

500

What are the three basic questions of economics?

What will be produced? Who will produce it? For whom will it be produced?