Post on 01-Apr-2015
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