Vocabulary
What is Economics?
Economic Systems
American Free Enterprise
Document Based Questions
100
The condition that results from society not having enough resources to produce all the things people would like to have.
Scarcity
100
What are the four factors of production?
land, labor, capital, entrepreneurs
100
What are the three basic questions all societies face?
What? How? For Whom?
100
Who decides what gets produced in a free enterprise economy?
Consumers
100
According to the chart, who participates in factor markets?
Individuals and Businesses
200
The value of the next best alternative given up.
opportunity costs
200
What occurs when factors of production perform only tasks they can do better or more efficiently than others?
Specialization
200
An economic system in which all major decisions about the economy are made by a central authority (government).
Command economy
200
A rise in the general level of prices.
Inflation
200
According to the chart, what are two ways that student loans have impacted people?
Delayed contributions to retirement, delayed buying a car, worked a second job, delayed buying a house, lived with roommates, moved in with family, postponed having kids, postponed marriage
300
A way of comparing the benefits of an action to the expected costs.
cost-benefit analysis
300
What is the monetary value of all final goods, services, and structures produced within a country in a 12 month period?
Gross Domestic Product (GDP)
300
What type of economic system is the U.S. considered?
Free market capitalist economy
300
What motive is responsible for the growth of a free enterprise system?
profit motive
300
How much does somebody with a Bachelor's degree make, on average per week?
$1,101
400
The incentive to improve one's material well-being and is largely responsible for the growth of a free enterprise system.
profit motive
400
What two things determine value?
Scarcity and Utility
400
What are some disadvantages of a traditional economy?
Lack or progress, new ideas are discouraged, lower standard of living.
400
Name at least two services the national government provides.
National defense, court system, subsidies, funding to state and local governments
400
What's the only way for this country to produce at letter d?
They need more resources.
500
Recognizes the role of the consumer as the ruler of the market.
consumer sovereignty
500
Apparent contradiction between the high value of a nonessential item and the low value of an essential item.
Paradox of value
500
What are some characteristics of a Market economy?
Great deal of freedom, private ownership of resources, capitalism
500
How does the government protect consumers from products that harm us?
Making and enforcing laws against false advertising, unsafe food and drugs, environmental hazards, unsafe cars, etc.
500
How would this country produce at letter e?
By not fully utilizing their resources.