Economics Review CE 11

Today we will review the Economic concepts we have learned thus far

Each of you will answer a question for 5 bonus points on your quiz

READY?????

HERE WE GO……

This is the combining of natural, capital human and entrepreneurship resources.

Production

Give two characteristics of a TRADITIONAL ECONOMY

• Economic decisions are based on custom

• People perform the same work as their parents and grandparents

This is the amount of good or service available.

Supply

What are the FOUR economic systems?

Traditional Free MarketCommand

Mixed

This economic principle says we can not satisfy all our needs at the same time.

Scarcity

What are the 3 economic questions ALL societies must answer?

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

produced?

Name THREE characteristics of a FREE MARKET

• Private ownership of property/resources• Profit Motive• Competition

• Consumer Sovereignty • Choice

• Minimal government involvement

Why do people risk their cash and resources to start a business?

To make a profit!!

Name two characteristics of a COMMAND ECONOMY

• Central ownership by the government of ALL resources and property

• Centrally planned economy

• Lack of consumer choice

In a Free Market how much is the government involved in the private sector?

Very little

What type of economy is the United States? And what are some of its characteristics?

• The United States is a MIXED economy

• The government is in control of the public sector

• Individuals are in charge of the private sector

What is profit?

Your earnings after all your expenses have been paid

How is “price” determined?

By the interaction between supply and demand

This is what is given up when a choice is made

Opportunity Cost

What are incentives? –and give an example of one : )

Things that motivate you to buy or not buy

things. Incentives are used to change

economic behavior.

Why is competition good in the marketplace?

Competition between sellers results in better

quality goods and services at lower prices

The factors of production used to make things are called….

Resources

In the United States economic decisions are made by who?

The people AND the government

In a Mixed economy who controls the Private Sector?

The People

This is the amount of good or service that consumers are willing to buy at a certain price

Demand

Joseph’s father is a cattle farmer and so was his grandfather. Joseph wants to be a

computer programmer, but can’t. What kind of economy is Joseph a part of?

A traditional economy

Individuals must make a __________ about what goods and services they will use because goods and services are limited.

choice

What do we call the using up of goods and services?

Consumption

What do you use to study for tomorrows quiz?

•Your Notes #2,#3 & #4

•Your SOL packet 11a, 11b & 11c