Chapter 4 Economy

Match the following important vocabulary from Chapter 4.

• new inventions or ways of doing things.

• innovations

• the process of hiring people to work outside of a company.

• Outsourcing

• the amount a company can produce with a certain amount of labor.

• Productivity

• things that encourage us to take action, such as making a purchase (think reward points or sales)

• incentives

Chapter 4 Lesson 1

In a command economy, the government decides what goods and services can be made and sold. How is this different from a market economy/free enterprise system?

• In a market economy, consumers decide which goods and services to produce

• In a market economy, producers decide which goods and services to produce

• In a market economy, only goods and services that have a high demand are produced.

• In a market economy the government works with consumers to decide which goods and services will be produced.

Chapter 4 Lesson 4

What is one example of interdependence in a global economy?

• a woman who builds a bicycle using parts from old bicycles that she has collected over the years.

• a farmer who grows fruits and vegetables and then takes them to sell at a local farmers' market

• a person who builds houses using lumber and bricks from houses that have been torn down.

• a company produces televisions using parts from all over the world.

Chapter 4 Lesson 2

What do most people need in order to provide for their needs and wants?

• an income

• inflation

• special skills

• incentives

Chapter 4 Lesson 3

How can students increase their chances of finding a job after they finish school?

• by taking out a loan and starting a business

• by finding investors to support a new compnay

• by continuing to study and learn new skills

• by using their savings to buy stocks, or a portion of a company?

Chapter 4 lesson 1

Which is an example of the government providing a public good?

• using the armed forces to protect our country

• providing students with an education

• offering mail delivery

• paying to build a school

Chapter 4 lesson 2

How is bartering different from paying money for a good or service?

• Bartering trades one type of good or service for another. No money used.

• Bartering involves buying a good or service only when incentive is offered.

• Bartering uses money for goods and a rade for services.

• Bartering is used only when supply o fa good is greater than its demand.

Chapter 4 lesson 2

Which is an example of inflation?

• a rise in the cost of a postage stamp

• a lower price for a store's t-shirt when supply is greater than demand

• a rise in the price of needs such as food, shelter, and basic cothing

• a trade involving a new skateboard for a used laptop computer.

Chapter 4 lesson 2

When you buy something from a business, what is the goal of the business?

• To have supply meet demand

• to make a profit

• to get rid of its supply

• to get your friends to buy something also

Chapter 4 lesson 1

Which describes a consumer?

• a person or company that buys a good or service

• a person or company who makes a good or a service

• a person or company that knows how to earn a profit

• a person who owns private property, such as a house or a car