Economics Unit Study Guide

Transcription

1 Name: Date: Period: Economics Unit Study Guide VOCABULARY 1 Capital or property used to make. 2 Consumption The use of a or. 3 Corporation A large with many. ** is limited to how much you. 4 Demand Amount of and services people are willing to at a certain. 5 Goods Products that are,, or. 6 Incentive Something that is used to motivate the or to economic behavior. 7 Something that is given up when resources are used for one purpose rather than another. 8 Partnership Business that is owned by or more people who profits and loss. 9 Profit that is made after all is paid. 10 Proprietorship Business that person owns and operates: they get all the but also take all the. 11 Revenue The amount of income before any are made. 12 Scarcity Condition where resources are. 13 Supply Amount of or services producers are willing to at a certain price. CE.11.aBASIC ECONOMICS CONCEPTS 14 Scarcity The to satisfy all at the same time 15 Resources Everything that is to make and. 16 Choice Selecting an item from a set of. Individuals must make choices because and are.

2 17 Opportunity cost It s what is when a is. 18 Price 19 Incentives The of for a or. Interaction of and determines. Things that people to in a. They are use to. 20 Supply The amount of something are willing and able to at a certain. 21 Demand The amount of something are willing and able to at a certain. 22 Production Combining of to or. and determine what is produced. 23 Consumption FACTORS OF PRODUCTION 24 What are the four factors of production? 25 What are factors of production used for? 26 What is a synonym for factors of production? R CE.12.bCIRCULAR FLOW 27 What are the 3 groups money flows through? 28 (households) the resources used in, the resources, and use the income to.

3 29 (producers) resources, make that are sold to, other and the, and use to buy more resources. 30 Governments Use revenue from and to provide and services. CE.13.cTax, Borrow, and Spend 31 How does the government influence economic activity? Government tax reduce the funds available for & spending Increased government reduces funds available for borrowing. Increased government increases demand, which may increase and production. government spending reduces demand, which may the economy Increased government spending may lead to taxes; decreased spending may lead to taxes 32 Personal & Business Income Tax Amendment Amendment CE.11.bEconomics Systems 33 Characteristics of Major Economics Systems No country relies exclusively on to deal with the problem of 34 Economy Economic decisions are based on & precedent People often perform the same type of work as their & ; regardless of ability or potential 35 Economy ownership of property & resources, usually by Centrally-planned economy Lack of consumer

4 ownership of property & resources 36 Economy Profit motive, competition, and consumer Individual Minimal in the economy & are owners and decision makers for the sector 37 Economy is owner and decision maker for the sector Government s role is than in a economy and than in a economy Most economies today, including the are this type of economy CE.11.cUNITED STATES ECONOMY 38 How do markets operate? Generally operate without undue interference from the 39 How are prices determined? Prices are determined by and as and sellers interact in the marketplace. 40 Profit Consist of earnings after all have been paid 41 Private Property and have the right to own property as well as the means of without undue interference from the 42 Competition Rivalry between and/or of a good or service usually results in better quality and at prices. determine through purchases what and will be produced 43 Consumer Sovereignty Government involvement in the economy is. Most decisions regarding the of goods and services are made in the sector.

5 CE.12.aTYPES OF BUSINESSES 44 Proprietorship A form of business organization with 45 Partnership A form of business organization with 46 Corporation A form of business organization that is authorized by law to act as a legal entity regardless of the of Owners share the Owner liability is limited to the amount of their 47 Entrepreneur A person who takes a risk to and sell and in search of May establish a according to any of the three types of organization business structures. CE.12.cPRIVATE FINANCIAL INSTITUTIONS/MONEY 48 How do financial institutions make the deposits of savers available to borrowers? Include, savings and, and credit Receive and make loans Encourage saving and by paying on deposits 49 Why does the government issue currency and coins? Government issues (coins & currency) to facilitate exchange for and ; results in people having confidence in the 50 Three types of money generally used in the United States are: C Federal Reserve notes (C ) D in bank accounts that can be accessed by checks and debit cards

6 CE.12.dGLOBAL ECONOMY 51 Global Economy Definition Worldwide markets in which the and of goods and services by all takes place To create To obtain goods & services they cannot themselves 52 Reasons that states & nations trade To goods & services at a cost or lower cost To goods & services to other VA and the United States in the production of certain goods & services, which promotes efficiency & growth 53 Impact of technological innovations Innovations in technology contribute to the global flow of i, c, g, & s. The use of such technology also the cost of CE.13.aCOMPETITION 54 Ways the government promotes marketplace competition Enforcing legislation to discourage the development of Engaging in global Supporting start-ups 55 Government agencies that regulate business These agencies oversee the way and do business FCC: F C C EPA: E P A FTC: F T C

7 CE.13.bGOODS & SERVICES Provide b to many simultaneously 56 Characteristics of most goods & services provided by the government Would not likely be available if i had to provide them Examples: i h, p s, and n d Through revenue 57 Ways governments pays for public goods & services Through borrowed Through (ex: entrance to parks) CE.13.dFEDERAL RESERVE SYSTEM 58 What is the role of the Federal Reserve system? The FED serves as our nation s Has the duty to maintain the value of the national (dollar) 59 Duties of the Federal Reserve: Regulate to ensure the soundness of the banking systems and the safety of Manages the amount of in the economy to try and keep low and stable CE.13.eCONSUMER RIGHTS & PRIVATE PROPERTY 60 What is the role of the United States government in protecting consumer rights and property rights? Individuals have the right of p o, which is protected by negotiated c that are enforceable by law G agencies establish guidelines that protect public h and s C may take legal action if rights are violated

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