Econ
How do economists use data? Choose two answers.
- to follow and predict unemployment rates - to explain trends in production and shipping
In a republic, elected officials create laws to regulate the economy.
true
What are some ways to address unemployment in a market economy? Select three answers.
- creating new projects - lowering restrictions - promoting hiring
The Three Economic Questions
- what should be produced? - who should receive the product? - how goods and services should be created?
____ is the act of working in exchange for an income.
Employment
What are the basic types of resources used by producers? Choose three answers.
capital, labor, land
A pure market economy is sometimes called pure
capitalism
How are the three questions answered?
- Making decisions about production -Using factors of production -Meeting needs and wants
How does a command economy differ from a mixed market economy?
In a command economy, citizens have fewer property rights. In a mixed market economy, citizens have more property rights.
Which statements correctly identify limitations of the factors of production? Check all that apply.
- Economies must consider their limitations when answering the three questions of economics - Capital includes all money and physical facilities needed to - - create a product-labor is a factor driven by the size of the population, education, and standard of living
What are some benefits to private ownership? Select three answers.
- Private ownership can make it possible for a business to earn money. - Private ownership might help a person move to another economic class. - Private ownership allows a person to own goods that may increase in value.
What are the cons of a mixed market economy for most citizens? CHECK ALL THAT APPLY.
- There may be a sizable gap between rich and poor people. - Citizens must pay for most basic necessities by themselves. - There is no guarantee of steady employment for many citizens. - Citizens often purchase their own health care and higher education.
Key Words:
- limited - factors of production - needs - wants
Land, labor, and capital also are known as factors of __________. Economies must answer the three economic questions because resources are _______. If an economy does not answer the three economic questions, resources may ___ ___. ________ consequences can result when an economy does not answer the three economic questions.
- production - limited - run out - Negative
How does a high unemployment rate affect the economy?
A high unemployment rate has a very negative effect.
Which of the following statements about opportunity cost are true?
It exists because resources are scarce. It influences consumers. It influences producers.
How can the government reduce the wealth gap in a mixed market economy?
The government can improve education to provide new opportunities for workers in the lower class.
Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in
a mixed market economy with some government regulation.
The government has the right to own all land, buildings, and factories in a
command economy
Critics of the wealth gap might argue that
economic growth will likely decline over time.
Opportunity cost means that something needs to be
given up
Land is considered a resource because it
is used to produce things.
Private property is land or goods
owned by an individual
What might happen if an economy is unable to produce wanted goods and services?
people will look somewhere else for them
New technology in _____ allows producers to use materials from all over the world to manufacture goods.
shipping
In a command economy, a cotton farm floods after a heavy storm. The repair work most likely will be paid by
the government group that runs the farm.
The difference in income between the richest and poorest citizens is called
the wealth gap
The number of data points that illustrate the proper allocation of resources is
three
