Key Vocabulary
Desires that can be met by goods or services.
What are wants?
A haircut is an example of this.
What is a service?
True or False: Every country has all the resources it needs.
What is false?
An economic system based on customs and traditions.
What is a traditional economy?
The U.S. economy is mostly this type of economy.
What is a market economy?
The study of how people and nations use scarce resources.
What is economics?
A laptop is an example of this.
What is a good?
Scarcity means there is a ______.
What is shortage?
An economy where the government makes all the decisions.
What is a command economy?
The U.S. economy is best described as this type, since it has elements of all systems.
What is a mixed market economy?
Which term describes natural resources, labor, and capital used to make goods and services?
What are resources?
Why is labor considered a resource?
Because workers’ time, effort, and skills are needed to produce goods and services.
Why do individuals and nations face scarcity?
Because wants are unlimited but resources are limited.
In a market economy, decisions are based on this.
What is making a profit?
One way the U.S. government makes sure businesses act fairly.
What is by setting rules or regulations?
This word describes the problem that arises when unlimited wants meet limited resources.
What is scarcity?
Identify whether each example is natural, labor, or capital: a factory machine, a doctor, fertile farmland.
What are capital, labor, natural?
Give an example of how scarcity might affect your choices.
The teacher will determine if answer is correct. Answers will vary.
Which economic system has planners decide what and how much is produced?
What is a command economy?
Provide one example of a public service the U.S. government provides.
What are schools, defense, etc.?
Explain the difference between wants and needs.
Wants are desires we would like; needs are essentials for survival.
Trucks, trains, and computers are examples of this type of resource.
What is capital?
Name the three basic economic questions societies must answer.
What to produce, how to produce, who gets it?
Prices play an important role in this type of economy.
What is a market economy?
Explain one way tradition shows up in the U.S. economy.
Example: family jobs or businesses passed down.