Economics Summative Review

What is ecnomics?

• The study of history and culture

• The study of mathematics and science

• The study of production, distribution, and consumption of goods and services

• The study of art and literature

What are the three basic questions answered by an economic system?

• What to buy? How to sell? Where to live?

• When to start? How to end? Why to continue?

• What to produce? How to produce? For whom to produce?

• Who to hire? What to eat? Where to travel?

Who makes the decisions in a command economic system?

• Consumers and producers

• Government

• Social roles and customs

• Entrepreneurs

Who makes the decisions in a traditional economic system?

• Consumers and producers

• Government

• Social roles and customs

• Entrepreneurs

Who makes the decisions in a market economic system?

• Consumers and producers

• Government

• Social roles and customs

• Entrepreneurs

What are the 4 factors of production?

• Mechanical resources, GDP, labor unions, entrepreneurs

• Natural resources, capital recourses, labor resources, entrepreneurs

• Bridges and buildings, capital letters, labor resources, college professors

• Bus drivers, school teachers, rocket ships, trains and cars

What is the difference between "Wants" and "Needs"?

• Wants are necessary for survival; Needs are not

• Wants and Needs are the same

• Wants are not necessary for survival; Needs are

• Needs are always more expensive than Wants

What are goods?

• Items produced, bought and sold

• People who buy goods and services

• Tasks performed for a fee

• The amount of a good or service that is available

Give an example of a good.

• Bread

• A person buys a car

• A man paints your fence

• The amount of people who want a product or service

What are services?

• Tasks performed for a fee

• The amount of a good or service that is available

• Items produced, bought and sold

• Money used to start business