NAME---------------------------------- CLASS -------- DATE ------------- A. As You Read As you read Section 1, supply the missing information about economic systems in the spaces provided. 1. Three economic questions answered: (a) (b) (cl----------------------------------------------------- 2. Economic concept necessitating choices and priorities in any ~ociety: 3. Economic question answered by basic social values and goals: 4. Five basic economic goals guiding society's choice of systems: (a) (b) (cl----------------------------------------------~------- (d) (e) 5. Four main kinds of economies: (a) (c) (b) ----------------------- (d) ----------------------- B. Reviewing Key Terms Complete each sentence by writing the correct term in the blank. 6. An economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services is a --------------- 7. An encyclopedia entry illustrating how a hunter-gatherer group collects and shares food resources is describing that society's --------------- 8. When voluntary exchanges in the markets determine decisions on production and consumption, the society's economic system is a ------- 9. When people earn income for supplying land, labor, capital, or entrepreneurship, they receive --------------- 10. An economic system in which the central government makes all decisions on production and consumption of goods and services is a --------------- 11. People who receive disaster relief from the government after a f.ood are benefiting from an economic system that provides a -------------- Chapter 2 Section 1: Guided Reading and Review 13)
NAME c~ss DATE ---------- Section 2: Guided Reading and Review The Free Market A. As You Read As you read Section 2, li!>t th~ role or roles played in a free market economy by each factor in the diagram below. Roles and Funct ons in a Free Market Economy Businesses B. Reviewing Key Terms Match the definitions in C0lumn I with the terms in Column II. Write the letter of the correct answer in the blank providec. You will not use all of the terms. Column I 6. market in which households purchase the goods and services that firms produce 7. an expectatio!l that encourages people to behave in a certain way 8. power of consumers to decide what gets produced 9. market in which fir:ns purchase the factors of production from households 10. financial gain made in a transaction 11. concentration of productive efforts of individuals and firms on a limited number ot activities 12. an arrangement that alluws for exchange among buyers and sellers Column II a. profit b. competition c. product market d. market e. incentive f. self-interest g. specialization h. factor market i. consumer sovereignty Chapter 2 Section 2: Guided Reading and Review 15)
NAME c~ss DATE ----------- Section 2: Quiz The Free Market A. Key Terms Briefly define or identify each of the following. 1. market 2. self-interest-------------------------------------------------------- 3. incentive 4. consumer sovereignty ----------------------------------------------------- B. Main Ideas Write the lener of the correct answer in the blank provided. 5. Why do people need1:o buy and sell products or services? a. People need to buy and sell products to make a profit. b. We need to maintain a competitive society. c. No one is self-sufficient. d. People need to provide the market with goods and services. 6. Who owns the factors of production? a. individuals b. households c. firms d. the market 7. How will consumers react to the incentive of a higher price on a good or service? a. The negative incentive will cause consumers to purchase less of the good or service if it is of lower quality. b. The positive incentive will cause consumers to purchase less of the good or service if it is of lower quality. c. The negative incentive will cause consumers to purchase less of the good or service if it is of higher quality. d. The positive incentive will cause consumers to purchase less of the good or service if it is of higher quality. 8. What "invisible hand" regulates the free market economy? a. incentives and efficiency b. specialization c. competition between firms d. competition and self-interest 9. Why are free market economies able to anain economic growth? a. Consumers can purchase all the goods they need, which causes firms to produce more. b. Competition encourages innovation, which causes growth. c. Everyone is acting in their own self-interest, which motivates market growth. d. Firms keep producing more incentives to encourage households to purchase more goods. 10. Which of the following is NOT an advantage of a free market economy? a. economic efficiency b. economic freedom c. economic equity d. economicgrowth (16 Chapter 2 Section 2: Quiz
NAME----------------------------- CLASS DATE ----------- Section 3: Guided Reading and Review Centrally Planned Economies A. As You Read As you read Section 3, supply the missing information in the chan below. Central Economic Planning in the Former Soviet Union 1. Main goal:----------------------------------------------- 2. Role of central government: (a) (b) 3. Effects on agriculture: (a) Positive---------------------------------------------- (b) Negative----------------------------------------------- 4. Effects on industry: (a) Positive------------------------------- (b) Negative------------------------------------ 5. Effects on consumers: (a) Positive (b) Negative----------------------------- B. Reviewing Key Terms Define the following terms. 6. socialism------------------------------------------- 7. commurusm 8. authoritarian---------------------------------------- 9. collective 10. heavy industry-------------------------------------- Chapter 2 Section 3: Guided Reading and Review 17\
NAME------------------------------------ c~ss DATE --------- ( Section 3: Quiz Centrally Planned Economies A. Key Terms Match the descriptions in Column I with the terms in Column II. Write the letter of the correct answer in the blank provided. Column I 1. requiring strict obedience to an authority, such as a dictator 2. a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government 3. a large Soviet farm leased by the state to groups of peasant farmers 4. a social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society 5. requires a large capital investment and produces items used by others Column II a. cornmumsm b. authoritarian c. socialism d. heavy industry e. collective B. Main Ideas Write the letter of the correct answer in the blank provided. 6. Why might a socialist society have a less rigid command economy than a communist ' society? a. In a socialist society, various political systems may be combined with public control of the economy. b. In a socialist society, all economic and political power rests in the hands of the central government. c. In a socialist society, an authoritarian government controls the economy. d. In a socialist society, the centers of economic power are under private cor.trol 7. Who decided what the farmers would produce on Soviet collectives? a. the farmers c. the government b. the military d. the consumers 8. How did collectives in the Soviet Union avoid the competition that drives a free market economy? a. There were no incentives for competition because the government determined prices, wages, and products. b. The farmers were not able to sell their own products. c. Heavy industry was not a direct competitor. d. It was illegal to buy products from a competitor. 9. Why might Soviet economic planners have favored heavy industry over the makers of consumer goods? a. The products of heavy industry brought in more money. b. There were more people trained to work in heavy industry. c. Consumer goods are not good economic investments. d. The products of heavy industry provide material for many other industries. 10. Which of the following is NOT a disadvantage of a centrally planned economy? a. It usually cannot meet consumers' needs and wants. b. It tries to meet explicitly stated goals. c. It does not reward innovation. d. It sacrifices individual freedoms. (18 Chapter 2 Section 3: Quiz