Principles of Business and Finance
8721
Essential
Standard#
Objective #
Unit A
Essential
Standard
1.00
PBF1.01
PBF1.02
PBF1.03
Unit Titles/Essential Standards and Objective
Statement
Local Use
Course
Weight
Principles of Business
Understand the role of business in the global
economy.
16%
Understand economic systems.
Understand economic conditions.
Understand business in the global marketplace.
5%
5%
6%
Essential Standard 1.00 will help students understand economic systems,
economic conditions, and business in the global marketplace. In objective 1.01 students
will determine how businesses satisfy needs and wants, and learn the six steps of the
economic decision-making process, about the relationship between how economic
questions are answered and the type of economic system that may exist in a country,
and the self-regulating principles of a market economy. In objective 1.02 students will
learn about the economic activities that are measured to determine the conditions of
any economy, and how the movement of an economy is classified. In objective 1.03
students will determine which factors and regulations businesses must consider when
doing operating in the global marketplace, determine the appropriate entry mode for
businesses to enter the global marketplace, and identify the role of international
business organizations.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 1
Course
Essential
Standard
Objective
Essential
Questions
8721 Principles of
Unit A
Business and Finance
1.00
B2 16%
Principles of Business
Understand the role of
business in the global
economy.
1.01
B2 5%
Understand economic
systems.
 How do businesses satisfy needs and wants?
 What are the six steps necessary for making choices?
 What is the relationship between who answers economic
questions and the type of economic system that exists in a
country?
 What are the self-regulating principles of a market economy?
UNPACKED CONTENT
I. Economics is the study of the decisions made for production, distribution, and
consumption of goods and services to satisfy needs and wants. To satisfy needs
and wants businesses use economic resources to produce, distribute, and sell
goods and services. The types of economic resources are:
A. Capital
B. Human
C. Natural
II. The six steps of economic decision-making process are:
A. Defining the problem
B. Identifying choices
C. Evaluating the advantages and disadvantages of each choice
D. Choosing one choice
E. Acting on the choice
F. Reviewing the decision
III. The involvement of a nation’s government in answering economic questions
determines its economic system. The economic questions address the allocation of
scarce resources.
A. The three economic questions are:
1. What to produce?
2. How to produce?
3. For whom to produce?
B. The main types of economic systems and who decides on the economic
questions are:
1. Command (Communist) Economy’s government decides.
2. Market Economy’s people determine.
3. Traditional Economy questions are carried out the same way.
4. Mixed Economy takes on fundamentals of command and market
economies.
C. The four principles that The United States economic system is based on are:
which are:
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 2
1. Competition
2. Freedom of Choice
3. Private Property
4. Profit
IV. Individuals, businesses, and government make buying decisions in a market
economy. These buying decisions make a market economy self-regulating. The selfregulating principles of a market economy are:
A. Consumers set demand.
B. Producers establish supply.
C. Supply and demand generate competition.
D. Demand and supply factors influence market (equilibrium) prices.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 3
INSTRUCTIONAL ACTIVITIES
RELEVANCE TO
OBJECTIVE
RESOURCES
Going Green
Please refer to the Going Green document in the introductory materials for
suggestions on how to conserve resources while teaching this course. For example,
graphic organizers are used to guide students in taking notes. Alternative methods
are suggested in the Going Green document to provide this material to students.
Course PLC
Please refer to the Course PLC document in the introductory materials for directions
to join the Moodle Professional Learning Community (PLC) for this course.
1
Business and Finance Introduction Helps students to Website:
begin to
http://stosselintheclass
 Assign students to groups of two.
UNDERSTAND
room.org/index.php?p=
 Facilitate each group watching a
(B2)
the
search.php
business or finance video from the
principles of
link in the resources column.
NOTE: This can also be done as a business and
class. Check videos prior to class. finance
 Facilitate students reflecting on the
video viewed by writing at least a
paragraph about how what they
viewed relates to what they expect
to learn in the course. NOTE:
Format of reflection may vary.
 Facilitate several groups sharing
reflections with class and how
videos relate to the content of the
course.
2
Satisfying Needs and Wants
Helps students to Textbook
Introduction
begin to
UNDERSTAND
 Have students read Focus on
(B2) how needs
Real Life on pages 6 and 12 in
and wants are
Intro to Business, 6e, Thomson
satisfied
South-Western textbook OR use
current events related to needs,
wants, and making choices.
 Facilitate a discussion using the
questions:
1. What are needs and wants?
2. What are goods and services?
3. What resources are needed to
meet needs and wants?
4. How are decisions made to
satisfy needs and wants?
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 4
INSTRUCTIONAL ACTIVITIES
3
RELEVANCE TO
OBJECTIVE
Helps students
UNDERSTAND
(B2) how needs
and wants are
satisfied
Satisfying Needs and Wants
Reading and PowerPoint
Presentation
 Present an overview of the
concepts:
o needs and wants are different
o businesses can provide goods
and services to satisfy needs
and wants
o businesses use economic
resources to produce, distribute,
and sell goods and services
o the basic economic problem of
scarcity
 Facilitate students completing
Satisfying Needs and Wants
Organizer. Students may obtain
information by reading pages 6-15
in Intro to Business, 6e, Thomson
South-Western textbook OR by
participating during presentation of
PowerPoint Presentation 1.01,
slides 1-16.
 Review how goods and services,
economic resources, basic
economic problem and economic
choices contribute to satisfying
needs and wants.
4
Economic Resources
Helps students to
CLASSIFY (B2)
 Assign students to groups of two.
how economic
 Facilitate students completing
resources are
Economic Resources Activity.
used to satisfy
 Facilitate a discussion about
responses. NOTE: emphasize how needs and wants
economic resources are used to
satisfy needs and wants. Discuss
uses of resources, examples:
1. NC farmers meet the needs of
families.
2. NC film industry meets the
wants of movie producers.
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Satisfying Needs and
Wants Organizer
Textbook
PowerPoint
Presentation 1.01,
slides 1-16
Economic Resources
Activity
Page 5
INSTRUCTIONAL ACTIVITIES
5
RELEVANCE TO
OBJECTIVE
Helps students to
UNDERSTAND
(B2) who makes
economic
decisions in
economic systems
Economic Systems Introduction
 Have students read Focus on Real
Life on page 17 in Intro to Business,
6e, Thomson South-Western textbook
OR use current events related to
economic decisions and systems.
 Facilitate a discussion using the
questions:
1. Who makes economic decisions
for the United States economy?
2. How are economic decisions made
in other countries?
6
Economic Systems Reading and
Helps students
Power Point Presentation
UNDERSTAND
(B2) the main
 Present the concept that how a nation
economic systems
answers the three questions that
determines its economic system:
1. What to produce?
2. How to produce?
3. For whom to produce?
 Facilitate students completing
Economic Systems Organizer.
Students may obtain information by
reading pages 17-22 in Intro to
Business, 6e, Thomson SouthWestern textbook OR by participating
during presentation of PowerPoint
Presentation 1.01, slides 17-20.
7
Comparing Economic Systems
Helps students
COMPARE (B2)
 NOTE: Read pages of Economic
the main types of
Systems Activity to ensure all
materials are available for this activity. economic systems
 Assign students to groups of four to
five.
 Facilitate students completing
Economic Systems Activity.
 Facilitate students completing
Economic Systems Debrief:
Comparing the Villes that describes
each main type of economic system.
NOTE: This can be completed as an
exit ticket, as a class.
 NOTE: This is a formative assessment.
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Textbook
Economic Systems
Organizer
Textbook
PowerPoint
Presentation 1.01,
slides 17-20
Economic Systems
Activity
Materials to
complete
Economic Systems
Activity (see
activity)
Page 6
INSTRUCTIONAL ACTIVITIES
8
RELEVANCE TO
OBJECTIVE
Helps students
begin to
UNDERSTAND
(B2) supply and
demand
Market Economy Introduction
 Have students read Focus on
Real Life on page 23 in Intro to
Business, 6e, Thomson SouthWestern textbook OR use current
events related to supply, demand,
and determining how much to pay
for items.
 Facilitate a discussion using the
questions:
1. How do you determine if a
business can satisfy your needs
and/or wants?
2. How do you determine how
much of a good or service is
enough?
3. How do you determine how
much you will pay for goods or
services?
9
Market Economy Reading and
Helps students
PowerPoint Presentation
UNDERSTAND
(B2) supply and
 Present how satisfaction and profit
demand and the
are necessary in a market
relationship of
economy.
both in
 Present the relationship of supply
determining
and demand.
prices
 Present how demand for goods or
services influence prices.
 Facilitate students completing
Market Economy Organizer.
Review supply and demand and the
relationship of both in determining
prices. Students may obtain
information by reading pages 23-26
in Intro to Business, 6e, Thomson
South- Western textbook OR by
participating during presentation of
PowerPoint Presentation 1.01,
slides 21-29.
Instructional Activities continued on the next page.
8721 Principles of Business and Finance
Summer 2010, Version 2
RESOURCES
Textbook
Supply and Demand
Organizer
Textbook
PowerPoint
Presentation 1.01,
slides 21-29
Page 7
INSTRUCTIONAL ACTIVITIES
10
11
12
RELEVANCE TO
OBJECTIVE
Helps students
INTERPRET (B2)
market prices
Interpreting Market Prices
 Facilitate students completing the
What is the Market Price?
Activity.
 Facilitate a discussion about how
the relationship between the
demand and supply of products
determines market price.
Key Terms
Facilitate students completing
Economic Choices and Systems
Key Terms Crossword Puzzle.
RESOURCES
What is the Market
Price? Activity
What is the Market
Price? Activity Key
Helps students
IDENTIFY (B2)
key terms
associated with
economic choices
and systems
Supplement
Corporate Economics
 Facilitate a discussion about what
kinds of information students
provide to other people in order for
decisions to be made.
 Ask students if their career plans
include working in an industry that
will allow them to provide
information that other people will
use to make decisions.
 Introduce the industry of Corporate
Economics.
 Have students read Planning a
Career in … Corporate
Economics page 5 in Intro to
Business, 6e, Thomson SouthWestern textbook.
 Facilitate a discussion of why
people providing services in the
corporate economics industry
should pay attention to details.
 Invite guest speakers representing
the corporate economics field.
Helps students
UNDERSTAND
(B2) career
options related to
economics
Economic Choices and
Systems Key Terms
Crossword Puzzle
Economic Choices and
Systems Key Terms
Crossword Puzzle Key
Textbook
Numeracy Strategy: To make a Math Academic Connection is to see a relationship between
a math concept and a real-life situation. Finding math-to-life connections greatly increase the
relevance of new information and skills being learned.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 8
Instructional Support Material
Textbook
Intro to Business, 6e, Thomson SouthWestern











Website
http://stosselintheclassroom.org/index.php
?p=search.php
Handouts (included)
Satisfying Needs and Wants Organizer 
Economic Resources Activity

Economic Systems Organizer
Economic Systems Activity
Materials to complete Economic
Systems Activity (see activity)
Economic Systems Debrief: Comparing
the Villes
Supply and Demand Organizer
What is the Market Price? Activity
What is the Market Price? Activity Key
Economic Choices and Systems Key
Terms Crossword Puzzle
Economic Choices and Systems Key
Terms Crossword Puzzle Key
8721 Principles of Business and Finance
Other
PowerPoint Presentation 1.01
(separate file)
Assessment Prototypes (included)
Summer 2010, Version 2
Page 9
Name: ______________________
Class: _______
Date: _______
Satisfying Needs and Wants Organizer
Directions: Describe in your own words the listed items.
Needs
Wants
Goods
Services
Economic resources
Natural
Examples
Human
Examples
Capital
Examples
The Basic Economic Problem
What is the relationship between scarcity and the basic economic problem?
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 10
Satisfying Needs and Wants Organizer Continued
Economic Decision-Making Process
What is the purpose of the decision-making process?
______________________________________________________________________
______________________________________________________________________
What happens to choices in a tradeoff?
______________________________________________________________________
______________________________________________________________________
What is opportunity cost?
______________________________________________________________________
______________________________________________________________________
In column one, provide the six steps of the economic decision-making process. In
column two, apply the steps and complete an economic decision such as purchasing
new equipment, shopping for a gift, or paying for a trip.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 11
Name: ______________________
Class: _______
Date: _______
Economic Resources Activity
Directions: Use the listed or other resources to classify how economic resources are
used to satisfy needs and wants.
Some North Carolina Resources:
Bank of America Stadium
Christmas Trees
NC Legislators
Sweet potatoes
Brier Creek Apartments
Therapists
Table of Resources and Uses
NC resource
Type of resource Does this
resource satisfy
needs or wants
How will this resource
satisfy needs or wants for a
business?
Honey
Natural
Answers will vary.
Answers will vary.
Wants
A business could sale 12 oz
jars of honey at a roadside
stand.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 12
Name: ______________________
Class: _______
Date: _______
Economic Systems Organizer
Directions: Provide responses for the listed items.
What are the three economic questions that economic systems must answer?
1. ________________________________________________________________
2. ________________________________________________________________
3. ________________________________________________________________
Main Economic Systems
Features
Command
Economy
Who owns the
resources?
Market Economy
Traditional Economy
Who answers the
three economic
questions?
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 13
Name ____________________ Class __________ Date __________
Economic Systems Activity
TEACHER’S GUIDE
Summary:
Students will have an opportunity to participate in the main economic systems
(command, market, and traditional). Each economic system is referred to as Told, Want,
or Always Done Ville. Students will be able to compare the advantages and
disadvantages of each system.
Materials:
 Six balls of light packing string
 Different colored wooden or plastic hobby beads (Varies with class size. See
Instructor Cheat Sheet and situation section of each We Make As Much As We ….
Ville System Profile)
 A ruler, scissors, and bowl/cup for beads for each group
 Copies of each system profiles-see Step 2
 Overhead of the scoreboard sheet or poster to present results
 Student copies of Economic Systems Debrief: Comparing the Villes
 Job labels sheet (one set per group)
Steps:
1. Have the room set up in six small groups, 4 or 5 students per group.
2. Each group should have a ball of string, bowl/cup for beads, scissors, a ruler, and
six copies of one of the system profiles.
3. Each student in the group is given a job label. This may be changed during the
activity if needed.
4. Walk students through the reading of the first “Ville” so that they understand the
directions.
5. Play three ten-minute rounds. The profiles are rotated during the rounds. (The
teacher should be aware of each set of directions so the scoring will be quick at the
end of each round.)
6. Groups are to follow whatever directions are on their profiles. The teacher distributes
beads at each round and acts as the quality control person.
7. After each round, post group scores on the scoreboard. The winning group is the
one that has the most dollars per person after the third round.
8. After all rounds have been completed, review the Economic System Debrief
Activity: Comparing the Villes** sheet is completed for each student and
discussed as a group. Discuss with students which system they prefer and explain
why. Examples of each type of system can be given at this time.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 14
Scoreboard
Team
Told Ville
Want Ville
Always Done Ville
1
2
3
4
5
6
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 15
Job Labels (Make one set per group)
String Cutter
Bead Sorter
Bead Stringer
Knot Tier
Knot Trimmer
8721 Principles of Business and Finance
String Cutter
Bead Sorter
Bead Stringer
Knot Tier
Knot Trimmer
Summer 2010, Version 2
Page 16
Instructor Cheat Sheet
Price List
Told Ville
Ring $2
Bracelet $5
Necklace $10
Want Ville
1 black
1 red
1 blue
1 pink
2 black
2 red
2 blue
2 yellow
2 black
2 red
2 blue
2 green
3 black
3 blue
2 red
2 green
3 black
3 blue
2 red
2 yellow



Reminders


5 bracelets
Any number
necklaces
$10/person; rest
to government
Specialization

Make whatever
they choose
Whatever
method
Always Done Ville
3 red
2 black
3 blue




1 bracelet
Say it is beautiful
by all
Wait 5 minutes
to start again
No specialization
Note: Keep in mind that economies have limited resources. It is not important to just
have the colors mentioned on the list. Teaching the ideas of scarcity is also part of this
activity.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 17
Values:
We Make As Much As We Are Told Ville System Profile
The government runs a very strict and strong central leadership group.
You are highly organized and the people of your group are assigned
specific tasks by the leader. Your country strives for efficient use of time
and resources, which will increase economic growth and hopefully raise
the standard of living. It is up to the central leaders to determine what is
needed and how the resources are used.
Goals:
To produce what the central leadership finds necessary for your society.
Also, there must be an efficient use of time and resources so increased
production and growth will occur.
Situation:
With your limited resources of string, bead, ruler, and scissors you can
create rings, necklaces, or bracelets. Your group will receive amounts per
item:
$2
Rings
$5
Bracelets
$10 Necklaces
You must immediately make 5 bracelets as your country is in desperate
need of them, and then the central planners want necklaces to be
produced by your group.
Production
Process:
The central planners emphasize specialization. The person sitting closest
to the front of the room will be the string cutter, then going clockwise
around the group, the next person is the bead sorter, the bead stringer,
knot tier, and knot trimmer.
Bracelet – 12” piece of string with 8 beads in this sequence
 2 black
 2 red
 2 blue
 2 yellow
Necklace – 20” piece of string with 10 beads in this sequence
 3 black
 3 blue
 2 red
 2 green
After the beads are on the string it should be tied in a knot and the knot should be neatly
trimmed. The finished product is then handed to the quality control person (teacher)
who marks down the dollar amount. Your group will receive $10 per person if the
required quota is filled. After that, the dollars earned by your production will go to the
central planner and will not be added to your total dollar amount.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 18
We Make As Much As We Are Want Ville System Profile
Values:
Your country and economic system reflect values which centers on
individualism and freedoms. It allows each person to make herself/himself
more prosperous than other people. Your country produces whatever
brings the highest price and produces it with the method that costs the
least. Individual rewards and material incentives are used to encourage
and stimulate continuous economic growth and production.
Goals:
To produce whatever your group decides will be most beneficial for it. You
will also want to organize yourselves so you can make the most efficient
use of time and resources. Maximized profit is the key.
Situation:
With your limited resources of string, bead, ruler, and scissors you can
create rings, necklaces, or bracelets. Your group will receive the amounts
per item:
$2
Rings
$5
Bracelets
$10 Necklaces
Your group produces whatever it wants.
Production
Process:
It is up to you to organize your group and choose jobs in whatever fashion
you want. You should have a string cutter, bead sorter, bead stringer, and
knot tier.
Ring – 6” piece of string with 4 beads in this sequence:
 1 black
 1 red
 1 blue
 1 pink
Bracelet – 12” piece of string with 8 beads in this sequence:
 2 black
 2 red
 2 blue
 2 green
Necklace – 20” piece of string with 10 beads in this sequence:
 3 black
 3 blue
 2 red
 2 yellow
After the beads are on the string it should be tied in a knot. You may trim
the knot neatly if you want. After the tying is done the finished product
must be handed to the quality control person (teacher). Your group will be
paid in full for as many of the items as you can produce within the time
limit.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 19
We Make As Much As We Always Done Ville System Profile
Values:
Your group is really concerned with the way things were done in the past.
Positions of authority, jobs, etc. are handed down according to tradition.
You value the past and see no need for concern about increase economic
growth in the future. Basically everything in your society is determined by
beliefs and customs.
Goals:
To produce what your ancestors did and in the same way that they did.
Following tradition is your basic underlying goal.
Situation:
With your limited resources of string, bead, ruler, and scissors you can
create rings, necklaces, or bracelets. Your group will receive the amounts
per item:
$2
Rings
$5
Bracelets
$10 Necklaces
Production
Process:
Each person must make the entire bracelet with no specialization of tasks.
The person that is the oldest in your group will use the string, ruler, and
scissors first and then pass it clockwise around the table.
Bracelet – 12” piece of string with 8 beads in this sequence:
 3 red
 2 black
 3 blue
After the beads are on the string it should be tied in a knot to finish the
bracelet. The knot should be neatly trimmed off, as done by past
generations. After each bracelet is finished it must be passed around the
group clockwise and each member must tell the maker how beautiful it is.
(This is an old tradition of your country.) The maker then hands it to the
quality control person (teacher) who records the $5 if all procedures are
followed correctly. According to tradition, each person can only make 1
bracelet every 5 minutes before starting a second one. So, after you
complete your first one, relax for 5 minutes before starting the second one.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 20
Name ____________________ Class __________ Date __________
Economic Systems Debrief: Comparing the Villes
Is progress
important to
this
economy?
Who chooses
your job?
What
motivates you
to produce?
How is the
product
produced?
How is it
decided to
produce?
For whom is
the product
produced?
Told Ville
Highly stressed
Want Ville
Highly stressed
Always Done Ville
Highly stressed
To some degree
To some degree
To some degree
Not at all
Individual preference
Not at all
Individual preference
Not at all
Individual preference
Government directed
Government directed
Government directed
Custom directed
Traditional incentives
Custom directed
Traditional incentives
Custom directed
Traditional incentives
High self-gain
High self-gain
High self-gain
Limited social gain
Least cost method
Limited social gain
Least cost method
Limited social gain
Least cost method
High cost method
High cost method
High cost method
Traditional ways
Government decides
Traditional ways
Government decides
Traditional ways
Government decides
Most profitable
Most profitable
Most profitable
Traditionally
produced
Those Declared in
Need
Traditionally
produced
Those Declared in
Need
Traditionally produced
Distributed by
Custom
Distributed by
Custom
Distributed by Custom
Highest Bidder
Cooperation
Highest Bidder
Cooperation
Cooperation
Competition
Competition
Competition
Custom
Custom
Custom
Those Declared in
Need
Highest Bidder
What base
values does
this economy
have?
Type of
Economy
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 21
Name: ______________________
Class: _______
Date: _______
Market Economy Organizer
Directions: Provide responses for the listed items.
Summarize The U.S. Economic System
Describe each of the principles of The U.S. Economic System.
Market Economy
What are
the roles
of
in a
market
economy?
Consumers
Producers
Self-Regulating Principles of a Market Economy
How does demand impact businesses?
How does supply impact businesses?
Examples:
8721 Principles of Business and Finance
Examples:
Summer 2010, Version 2
Page 22
Name ____________________ Class __________ Date __________
What is the Market Price? Activity
Directions: Use the figures provided to graph the demand, supply, and market price.
Determine the market price and explain the relationship between the demand and
supply of the products.
1. Johnson’s Jacket Depot
Demand table
Quantity
Price
1000
1550
2000
2500
$24
$22
$20
$18
Demand graph
Supply graph
Supply table
Quantity
Price
1000
1550
2000
2500
$18
$22
$24
$26
Use the demand and supply lines above to determine how much the jackets will cost.
Graph the market price for the jackets by using the graph below.
Market price graph
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 23
What is the Market Price? Activity continued
Directions: Use the figures provided to graph the demand, supply, and market price.
Determine the market price and explain the relationship between the demand and
supply of the products.
2.
3.
Software House
Price per game
$15
$13
$11
$9
Games demanded
15
30
45
60
Software House
Price per game
$13
$15
$17
$19
Games supplied
15
35
45
60
Burn’s Baby Dolls
Price per doll
$40
$30
$20
$10
Dolls demanded
10
20
30
40
Burn’s Baby Dolls
Price per doll
$20
$25
$30
$45
Dolls supplied
10
20
35
40
8721 Principles of Business and Finance
Summer 2010, Version 2
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What is the Market Price? Activity KEY
Directions: Use the figures provided to graph the demand, supply and market price.
Determine the market price and explain the relationship between the demand and
supply of the products.
1. Market price graph
2500
*
2000
*
*
*
1500
*
1000
*
*
$18 $20 $22 $24 $26
Market price: $22
Customers are willing to buy 1500 jackets and the business is willing to supply the
jackets at $22 each.
2. Market price graph
60 *
45
*
*
*
*
30
*
15
*
*
$9 $11 $13 $15 $17 $19
Market price: $14.00
Customers are willing to buy 25 games and the business is willing to supply the games
at $14.00 each.
3. Market price graph
40
*
*
*
30
*
20
10
*
*
*
*
$10 $20 $30 $40 $45
Market price: $29.00-$29.50
Customers are willing to buy 25 games and the business is willing to supply the games
at $29.00-$29.50 each.
8721 Principles of Business and Finance
Summer 2010, Version 2
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Name ____________________ Class __________ Date __________
Economic Choices and Systems Key Terms Crossword Puzzle
Directions: Complete the crossword puzzle.
8721 Principles of Business and Finance
Summer 2010, Version 2
Page 26
Economic Choices and Systems Key Terms Crossword Puzzle
Across
1. Combines elements of the command and market economies
3. The initiative to combine natural, human, and capital resources
5. Value of the next-best alternative that is forgone to produce or obtain another product
8. Businesses that offer the same goods to the same customers
11. Individuals and organizations that determine which goods and services will be available for
consumption
16. Process of choosing which needs or wants will be satisfied
20. Means from which goods and services are produced
22. Right to purchase, use, and discard of things of value
23. Activities that can be consumed at the time of purchase to satisfy needs and wants
24. Condition that exists when wants or needs exceed resources available
25. Study of the decisions made for production, distribution, and consumption of goods and services to
satisfy needs and wants
26. Necessities required for living
27. Buys and uses the goods and services
Down
2. Goods and money used in the production of goods and services
4. Raw materials supplied by nature
6. People using efforts, knowledge, and skills at work to produce goods and services
7. Economic system which freedom to consume and produce goods and services exists
9. Economic system in which decisions are based on customs and centered on family
10. Items that can be purchased to satisfy needs and wants
12. Money left after selling goods and services and costs of operating a business have been paid
13. Goods that are purchased to add comfort or pleasure to life
14. Anywhere goods and services exchange hands
15. Process of giving up something for gaining something else
17. Goods and services are owned and controlled by the people
18. Opportunity to make choices of goods and services and accept consequences of decisions
19. Economics system in which the government owns resources and dictates what is produced
21. The point where supply and demand are equal
Capital resources
Command economy
Competitors
Consumer
Economics
Economic decision-making
Economic resources
Entrepreneurial resources
Free enterprise
Freedom of choice
Goods
Human resources
Market economy
Market price
8721 Principles of Business and Finance
Marketplace
Mixed economy
Natural resources
Needs
Opportunity cost
Private property
Producers
Profit
Scarcity
Services
Tradeoff
Traditional economy
Wants
Summer 2010, Version 2
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Economic Choices and Systems Key Terms Crossword Puzzle KEY
Across
1. Mixed economy-Combines elements of the command and market economies
3. Entrepreneurial resources-The initiative to combine natural, human, and capital
resources
5. Opportunity cost-Value of the next-best alternative that is forgone to produce or
obtain another product
8. Competitors-Businesses that offer the same goods to the same customers
11. Producers-Individuals and organizations that determine which goods and services
will be available for consumption
16. Economic decision-making-Process of choosing which needs or wants will be
satisfied
20. Economic resources-Means from which goods and services are produced
22. Private property-Right to purchase, use, and discard of things of value
23. Services-Activities that can be consumed at the time of purchase to satisfy needs
and wants
24. Scarcity-Condition that exists when wants or needs exceed resources available
25. Economics-Study of the decisions made for production, distribution, and
consumption of goods and services to satisfy needs and wants
26. Needs-Necessities required for living
27. Consumer-Buys and uses the goods and services
Down
2. Capital resources-Goods and money used in the production of goods and services
4. Natural resources-Raw materials supplied by nature
6. Human resources-People using efforts, knowledge, and skills at work to produce
goods and services
7. Free enterprise-Economic system which freedom to consume and produce goods
and services exists
9. Traditional economy-Economic system in which decisions are based on customs
and centered on family
10. Goods-Items purchased to satisfy needs and wants
12. Profit-Money left after selling goods and services and costs of operating a business
have been paid
13. Wants-Goods that are purchased to add comfort or pleasure to life
14. Marketplace-Anywhere goods and services exchange hands
15. Tradeoff-Process of giving up something for gaining something else
17. Market economy-Goods and services are owned and controlled by the people
18. Freedom of choice-Opportunity to make choices of goods and services and accept
consequences of decisions
19. Command economy-Economics system in which the government owns resources
and dictates what is produced
21. Market price-The point where supply and demand are equal.
8721 Principles of Business and Finance
Summer 2010, Version 2
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ASSESSMENT PROTOTYPES
Note: These assessment prototypes are examples of the types of items included in the
item bank. All items are comparable to the cognitive process of the understand verb.
Questions require students to demonstrate that they understand the content.
Assessment prototypes will not be used on the secured test, but questions in similar
formats will be used.
Revlon, Inc. purchased new machines that will automatically squeeze the appropriate
amount of shampoo into different size bottles. What type of economic resources are the
machines?
A. Capital
B. Human
C. Natural
D. Service
ANSWER: A
Tanya closed her restaurant, and now needs another way to earn an income. Realizing
this need is what part of economic decision-making process?
A. Defining the problem
B. Identifying choices
C. Evaluating the advantages and disadvantages of each choice
D. Choosing one choice
ANSWER: A
Eddie’s Bakery makes cakes as well as other baked goods. Which economic question
does this address?
A. What to produce?
B. How to produce?
C. For whom to produce?
D. When to produce?
ANSWER: A
An EXAMPLE of a value for a traditional economy is:
A. a central leadership group expecting all the profit from production.
B. a local company choosing to produce gaming software.
C. a local company upgrading procedures regularly to increase production.
D. an individual performing the same jobs as his parents due to his beliefs.
ANSWER: D
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Summer 2010, Version 2
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ASSESSMENT PROTOTYPES Continued
Which is an EXAMPLE of consumers establishing demand?
A. Customers waiting in line to purchase new popular boots.
B. Customers waiting in line to return recalled equipment.
C. Reebok footwear company trying to lease a warehouse.
D. Sears Department Store displaying fewer large lawn mowers.
ANSWER: A
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Summer 2010, Version 2
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