Name: _______________________ Date: __________________________ Block:________ Teacher:_________________
Study Guide: Economics Part II (CE.13 & CE.14) KEY
1. CE.13a - Guiding Question
a. How does the United States government promote and regulate marketplace
competition?
i. In what ways does the government promote marketplace competition?
1. Enforcing _______________________ legislation to discourage the
development of _______________________
2. Engaging in _______________________ trade
3. Supporting _______________________ start-ups
ii. What are examples of government agencies that regulate business?
1. _______________________ (Federal Communication Commission)
2. EPA (_______________________)
3. _______________________ (Federal Trade Commission)
4. What do these agencies do?
a. They oversee the way individuals and _______________________
do business
2. CE.13b – Guiding Questions
a. What types of goods and services do governments provide?
i. What are characteristics of most goods and services provided by the
government?
1. Provide _______________________ to many simultaneously
2. Would not likely be available if individuals had to provide them
3. Include such things as interstate _______________________, postal
service, and national _______________________
b. How do governments pay for the goods and services they provide?
i. Through _______________________ revenue
ii. Through borrowed _______________________
iii. Through _______________________ (e.g. park entrance fees)
3. CE.13c – Guiding Question
a. How does the government influence economic activity?
i. Taxes
ii. Borrowing
iii. Spending
iv. _______________________ Amendment: Authorizes Congress to tax personal
and business incomes
Name: _______________________ Date: __________________________ Block:________ Teacher:_________________
4. CE.13d – Guiding Question
a. What is the role of the Federal Reserve System?
i. As the _______________________ of the United States, the Federal Reserve
System…
1. Has a duty to maintain the _______________________ of national
currency (dollar)
2. Regulates banks to ensure the soundness of the banking system and
the safety of _______________________
3. Manages the amount of money in the economy to try to keep
_______________________ low and stable
4. Acts as the federal governments bank
5. CE.13e – Guiding Question
a. What is the role of the U.S. government in protection consumer rights and
property rights?
i. Individuals have the right of _______________________ ownership, which is
protected by negotiated _______________________ that are enforceable by
law.
ii. Government agencies establish guidelines that protect public
_______________________ and safety.
iii. Consumers may take _______________________ action against violation of
consumer rights.
6. CE.13f – Guiding Questions
a. Why does the government issue currency and coins?
i. When the United States government issues coins and currency, people
accept it in exchange for goods and services because they have
_______________________ in the government.
ii. Government issues money to _______________________ this exchange.
b. Which government agencies are responsible for creating money?
i. The three types of money generally used in the United States are:
1. Coins
2. _______________________ notes (currency)
3. _______________________ in bank accounts that can be accessed by
checks and _______________________ cards.
Name: _______________________ Date: __________________________ Block:________ Teacher:_________________
7. CE.14 – Guiding Questions
a. What is the role of self-assessment in career planning?
i. Career planning _______________________ with self-assessment.
b. What is the role of work ethic in determining career success?
i. Employers seek employees who demonstrate the attitudes and behaviors
of a strong _______________________.
c. What is the relationship among skills, education, and income?
i. Higher skill and/or education levels generally lead to higher
_______________________.
ii. Supply and _______________________ also influence job income.
iii. Employers seek individuals who have kept pace with
_______________________ changes by updating their skills.
d. What influence do advances in technology have on the workplace?
i. Technology and information flows permit people to work across
_______________________ borders.
1. This creates competition from _______________________ workers for
United States jobs but also may create opportunities for United
States workers to work for companies based in other
_______________________.
ii. Being fiscally responsible includes making careful spending decisions,
_______________________ and investing for the future, having
_______________________, keeping to a _______________________, using
_______________________ wisely, as well as understanding how contracts,
warranties, and guarantees can protect the individual.
8. Further Clarification:
a. How do debit cards work?
i. Charging your debit card = money pulled directly from your
_______________________ account.
b. How do credit cards work?
i. When you charge your credit card, the credit card
_______________________ pays the bill, and you promise to pay them back.
If you don’t pay them back on schedule, there are extra fees.
c. What is inflation?
i. A general increase in _______________________ for goods and services, and
an accompanying fall in the purchasing _______________________ of
money
Name: _______________________ Date: __________________________ Block:________ Teacher:_________________
d. Consider this scenario:
i. The Federal Reserve wants to stimulate the economy by encouraging
consumers to borrow to that they can spend. What will it do to the
interest rates for borrowers? Answer: It will lower them to make it “cheaper
to borrow money.”
9. Circular Flow (Suggestion: Draw a picture to help you understand.)
a. Businesses pay _______________________ as wages/paychecks to households.
b. Households use the income to purchase goods and services from
_______________________.
c. Both households and businesses pay _______________________ to the U.S
government.
d. Banks issue _______________________ for the U.S. government.
e. Banks make _______________________to both businesses and households.
f. _______________________ spending on public goods and services benefits both
households and businesses.
g. Government pays U.S. bond _______________________ to both households and
businesses.
h. Households deposit _______________________ in banks.