The Nations Economy

What is the economy?

100

What is a consumer?

A person needs or wants something.

200

What is an economic choicce?

The consumer weighs his or her needs and wants before spending money.

300

In a free enterprise system, these people or businesses make the goods and services we use.

producers

400

What sector of the economy includes teachers?

services sector

500

A public park is an example of

a good produced by the government that is available to everyone

Trade and Markets

100

What is bartering?

the exchange of one type of good or service for another

200

The price of various goods has been steadily rising for months. As a result, people are not able to buy things they need for the same amount of money as they could a year ago. This is evidence of

inflation

300

Give an example of how a business can make a profit?

produce a book for $5 and sell it for $15

400

what reason explains why an entrepreneur’s business might fail?

The company was not profitable.

500

A successful business must create a product or service that has enough ________ to meet a high ________.

supply and demand

People and the Economy

100

Define scarcity

The amount of something you want or need may be limited.

200

What is a negative incentive? give an example of a negative incentive?

a penalty that discourages people from taking certain actions or behaving in a way that makes them worse off an example would be the cost of an airplane ticket goes up the longer you wait to book it.

300

Which is an example of an economic decision?

purchasing a certain cereal over another

400

Why do people put their money in a bank?

To keep it safe and earn extra money.

500

Going to college is an economic incentive for some people because a college education can

result in skills that are required for higher-paying jobs

Global Economy

100

Which is an example of technology impacting global trade?

A.Car parts are produced and assembled in the same place.

B.Modern cargo ships can hold fewer goods than in the past.

C.Companies use e-mail to communicate across great distances.

D.Products from a country can be found more cheaply at local businesses.

C

200

What is meant by the term specialization?

Workers focus on a single task of a larger job.

300

Division of labor leads to higher quality products and an increase in ________.

productivity

400

Define imports vs exports

• Imports: Goods or services that a country buys and brings in from other countries. (Think: "In" for imports.)
• Exports: Goods or services that a country makes and sells to other countries. (Think: "Exit" for exports.)

500

One negative effect of globalization is ________.

the outsourcing of American jobs overseas