Vocabulary Activity. The American Free Enterprise System. Content Vocabulary

Transcription

1 Vocabulary Activity Content Vocabulary Directions: Respond to the questions or statements below using the vocabulary words shown in parentheses. 1. Name an economic right of the American people protected by the U.S. Constitution, and explain why it is important. (private property rights, incentive) 2. What is an important aspect of the American free enterprise system that encourages people to improve their material well-being? (profit motive) 3. What role does the consumer play in determining the goods that are produced? (consumer sovereignty) 4. What type of free enterprise system do we now have in the U.S.? What roles does the government play in this system? (mixed or modified free enterprise economy) 5. What do we call the price floor for worker s wages? What economic and social goal does such a price floor serve? (minimum wage) 1

2 Vocabulary Activity cont. 6. What does free enterprise capitalism allow to flourish? Who benefits from that? (competition) Directions: From the following words in parentheses, choose the best term to answer each question. Write each word in the blank provided. (profit, entrepreneur, Medicare, Great Recession, inflation, biofuels) 7. Which word refers to an economic downturn that occurred in the early twenty-first century? 8. What describes the difference between the revenue from sales and the full opportunity cost of resources involved in producing the sales? 9. In a free enterprise system, what is a risk-taking individual who looks for profits called? 10. What is the federal healthcare program for senior citizens called? 11. Workers need more money to pay for food, clothing, and shelter when what occurs in the economy? 12. What are fuels whose energy is derived from renewable plant and mineral materials? 2

3 Vocabulary Activity cont. Academic Vocabulary Directions: Write the letter of the phrase or sentence that best answers each question or completes each sentence. 13. What does the term incentive mean? a. something that motivates b. something that changes c. something that decreases d. something that increases 14. To be a catalyst is to a. eliminate activity b. stimulate activity c. measure activity d. record activity 15. A regulator is a. someone or something that encourages activity b. someone or something that organizes activity c. someone or something that controls activity d. someone or something that measures activity 16. Which of the following is a synonym of adverse? a. unfavorable b. helpful c. useful d. friendly 3

4 NAME DATE CLASS Vocabulary Activity cont. 17. To accommodate means a. to control b. to disrupt c. to allow d. to upset 18. A national economic free enterprise system a. has limited government intervention b. has no government intervention c. has much government intervention d. has extreme government intervention 4

5 Guided Reading Activity Lesson 1 American Free Enterprise Capitalism Review Questions Directions: Complete the statements below. Refer to your textbook as you write the answers. A. Characteristics of Free Market Capitalism 1. An economy based on free enterprise has both and. 2. Economic freedom grants the ability to the things you want and where and for whom you want. Businesses can the workers they want and are free to success or failure. 3. In, acquire items they believe are worth than the money charged, while believe the item sold is worth than the cash paid. Both parties believe they from the transaction. 4. In a capitalistic system, people can do whatever they choose to their property due to. Additionally, they have the opportunity to and based on the value of their property. 5. drives producers to improve their well-being. Because of this, the lure of guarantees a constant supply of goods and services from all kinds of producers. 6. Capitalism helps ensure resources are used efficiently by promoting among producers. 1

6 Guided Reading Activity cont. B. Benefits of Free Market Capitalism 1. Individual freedom exists economically and politically in places where and allow people to choose their government as well as their purchases. 2. Because in market economies production is based on people s, not just their needs, there is a wide of options available for many kinds of goods and services. 3. Price can drive in market economies, where consumers demands lead to producers innovations that make the most of scarce or expensive. 4. Companies competing for business produce better, usually for money. This promotes economic. 5. Economists think of as the accumulation products that are, scarce, have utility, and are from one person to another. C. Disadvantages of Free Market Capitalism 1. The most recent example of uneven economic growth in the United States was the, which lasted 18 months between 2007 and During this period, the nation s GDP shrank about and percent. 2. The widening gap between and may require government interventions some criticize as too in nature. 2

7 Guided Reading Activity cont. 3. In the -side of the market, suppliers tend to with other suppliers to avoid or to become more efficient. This means that participant on the -side of the market have fewer suppliers to chose from. 4. Businesses have most of the same rights as. They can sue and be sued, they can enter into, and they can own. However, corporations cannot like you can. Summary and Reflection Directions: Summarize the main ideas of this lesson by answering the question below. Describe the characteristics of our economic system? Of the benefits and disadvantages of our freeenterprise capitalism, which do you think are stronger? Why? 3

8 Guided Reading Activity Lesson 2 Roles and Responsibilities in a Free Enterprise Economy Review Questions Directions: Read each main idea and answer the questions below. Refer to your textbook as you write the answers. A. Main idea: Entrepreneurs are vital to the success of a free enterprise economy because they start businesses. 1. Why do entrepreneurs try to start businesses or develop new products? Are they more likely to succeed or fail? 2. Who benefits from the activities of entrepreneurs, and how? B. Main idea: Consumers tell businesses WHAT to produce in our economy. 1. Why is the customer always right? 2. Explain how consumer sovereignty helps drive progress. 1

9 NAME DATE CLASS Guided Reading Activity cont. C. Main idea: In our mixed free-enterprise economy, the government helps oversee production, protects consumer and business rights, and acts as consumer. 1. How does the government act as protector of the economy? 2. What services and goods does the U.S. government supply its citizens? 3. What services do state and local governments provide? 4. Why is government regulation important? 5. Why do all levels of government consume so much? 2

10 NAME DATE CLASS Guided Reading Activity cont. D. Main idea: Though government involvement means the United States economy is not a purely capitalistic one, the public demands the benefits that government involvement provides. 1. Why is a mixed (or modified) free enterprise economy necessary? Why not do away with government regulation? Summary and Reflection Directions: Summarize the main ideas of this lesson by answering the question below. Explain how the entrepreneur, consumer, and government interact in our economy. 3

11 Guided Reading Activity Lesson 3 Evaluating Economic Performance Review Questions Directions: Complete the statements below. Refer to your textbook as you write the answers. A. Economic and Social Goals 1. Economic freedom is the ability of businesses and consumers to make their own. 2. Because resources are scarce, we need to have economic. 3. Because we value economic equity, it is illegal to in employment, there is a wage, and there are that protect consumers from false advertising and defective products. 4. To protect against adverse economic events, the government set up a retirement and disability benefits program called, as well as a health insurance program called. 5. Without jobs, people cannot support themselves or their families; because of this, the goal of full is important to many people. 6. Price helps protect against a rise in the general level of prices, called. This rise in prices can hurt people on a fixed and businesses that suffer when rates rise. 7. Economic is essential to meet people s as the population. 1

12 Guided Reading Activity cont. B. Resolving Trade-Offs Among Goals 1. Conflicting goals involve considering - and costs. 2. In the United States, many conflicting economic goals are worked out politically, and people for candidates who support their goals. 3. Our attempts to compromises in our goals have altered, or, our economic system. Summary and Reflection Directions: Summarize the main ideas of this lesson by answering the question below. In what ways might our economic goals conflict? Are economic goals constant, or do they change over time? How are conflicts among goals resolved? 2