Ch. 13 Study Guide
1. What are examples of people’s basic wants?_________________________________
2. What are the 3 basic factors of production?____________________________________
3. To produce goods & services, land, labor, & capital combine in a
what?_______________________
4. In all economies people do what?_______________________
5. Give an example of scarcity?____________________________
6. What’s the 1st major decision in an economy?_____________________________
7. What’s the 2nd major decision in an economy?_____________________________
8. What’s the 3rd major decision in an economy?_____________________________
9. What influences how a society makes the 3 basic economic
decisions?________________________
10. In this country who makes the 1st decision?____________________________
11. How has technology affected the economy of the U.S.?__________________________
12. What might a society that values freedom allow its citizens to do?______________________
13. What is an economic decision that a farmer may make?_____________________________
14. Hunters probably hunt the same game by the same methods in this type of
economy?_________________________
15. The government usually owns important parts of the economy in this type of
economy?__________________________
16. Private individuals own the factors of production in this type of
economy?__________________________________
17. In today’s world, most countries have which type of economy?__________________________
18. Competition and profit-seeking play a large role in which type of
economy?______________________________
19. Limited resources compared to people’s wants is known as what?_________________________
20. What is considered capital when used to produce goods and
services?______________________
21. Give an example of free enterprise?_____________________________
22. Give an important feature of capitalism?_____________________________
23. People who are looking for a profit may hope that what happens?_________________________
24. If someone decides that the cost of taking a job is greater than its benefits , the decision was
based on what?______________________________