Reviewing Key Terms
Match the following terms with the descriptions below.
A.
B.
C.
D.
E.
factors of production
newly developed nations
command economy
gross national product
comparative advantage
F.
G.
H.
I.
J.
developing nations
trading bloc
tariffs
market economy
quotas
___
C 1.
an economy in which the government
makes most of the economic decisions
___
I 2.
an economy in which consumers make
most of the economic decisions
___
A 3.
the resources that an economic system
needs to produce goods and services
___
F 4.
nations with little or no industry
___
B 5.
nations recently having significant or rapid
industrial growth
Reviewing Key Terms
Match the following terms with the descriptions below.
A.
B.
C.
D.
E.
factors of production
newly developed nations
command economy
gross national product
comparative advantage
F.
G.
H.
I.
J.
developing nations
trading bloc
tariffs
market economy
quotas
the sum of a nation’s goods and services
principle that each country should produce
the goods it can make efficiently and trade
for other goods
___
H 8. taxes placed on imports to increase their
price in the domestic market
___
J 9. limits on the quantities of a product that
may be imported
___
G 10. a group of nations that trade without
economic barriers
___
D 6.
___
E 7.
Recalling Facts
1. What are the four factors of production?
The four factors of production are land, labor,
capital, and entrepreneurs.
2. What is the role of competition in the free
enterprise system?
Competition is an essential ingredient for a free
enterprise system. It helps ensure that the
consumer will get products of good quality at
low prices.
Recalling Facts
3. Where are most newly developed
nations located?
Most newly developed nations are located in
Eastern Europe, the Middle East, Asia, and
South America.
4. How has China’s growing economy impacted
the United States?
Trade with China is opening new American
markets; U.S. investment in China is increasing;
changes provide new sources of income for
some American workers and professionals;
some American industries are harmed because
they cannot compete with low Chinese labor
costs; China’s future relationship with the U.S. is
uncertain.
Recalling Facts
5. What are the causes of a lack of national unity
in some developing nations?
When colonial rulers left, fears and hatreds
based on ethnic, regional, religious, racial, and
language ties surfaced.
Understanding Concepts
1. Free Enterprise How did Soviet agricultural
policy differ from the policy practiced in the
United States?
Crops were sold at uncontrolled prices; team
workers’ pay was based on how hard the
workers worked and how much they produced.
Understanding Concepts
2. Global Perspectives What are the
differences between the traditional and the
new economic goals to promote development
in developing nations?
Goals have shifted from increasing the GNP to
improving people’s lives.
Critical Thinking
1. Making Comparisons Use a graphic
organizer like the one below to compare land
ownership in a capitalist system with that in a
planned economy.
Capitalist system—land is privately owned
with some government ownership to provide
public services; Planned economy—all land is
owned by the government
Critical Thinking
2. Drawing Conclusions Why might industrialized
nations such as the United States exercise
influence on developing nations to develop free
market economies and democracy?
Answers will vary but may include that new
free market, democratic nations might
become good trading partners and provide
markets for products.
Interpreting Political Cartoons Activity
1. What comparison is the cartoonist making?
Tensions between legislative and executive
branches of government are apparent in both
Russia and the United States.
Interpreting Political Cartoons Activity
2. Do you think the comparison is a valid one?
Why or why not?
Answers will vary. However, the United States
has balanced these powers during a long period
of stable government.
Interpreting Political Cartoons Activity
3. This cartoon was published in 1993. Are the
issues it raises still applicable today? Explain.
The issues it raises may always be applicable because as
long as different branches of government exist, there will
always be a struggle for power between them, especially
if different groups control the two institutions.
Interpreting Political Cartoons Activity
4. How do you think the economic situation in a
country affects its political climate?
The economic situation in a country may affect
how citizens perceive the effectiveness of their
government.
What is the formal name of the World
Bank, and under whose authority does
it operate?
A United Nations agency, it is known
formally as the International Bank for
Reconstruction and Development.