Student Name
3/18/2016
Warman/7
Principles of Business, Marketing & Finance
Chapter 2 Study Guide
Instructions: Cut & Paste the Vocabulary Words to the definitions
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capital resources
command economy
demand
economics
entrepreneurial resources
equilibrium price
factors of production
shortage of resources
the resources used to produce goods and
services
raw materials from nature used to produce goods
examples include wheat and cattle
examples include oil, iron, coal
the knowledge, efforts, and skills people provide
things such as buildings, materials, and
equipment used to produce goods and services
people who recognize the need for new
resources, risk-takers
the study of how society chooses to use resources
a system in which economic decisions are made
in the marketplace according to the laws of supply
and demand
the amount of goods and services that consumers
are willing to buy at various prices
the amount of goods and services that producers
will provide at various prices
when the quantity demanded and quantity
supplied meet
a system in which a central authority such as
government makes the key economic decisions
combination of a command and market economy
human resources
market economy
mixed economy
natural resources
nonrenewable resource
renewable resource
scarcity
supply
Highlight the four factors of production in your vocabulary table.
Student Name
3/18/2016
2
CHAPTER
Warman/7
Economic Resources and Systems
Put a Check Mark in the appropriate Column
Natural
Human
Capital
Resources Resources Resources
Tree ✔
Office
building ✔
Water ✔
Magazine
publisher ✔
Teacher ✔
Oil rig ✔
Corporate
manager ✔
Fish ✔
Bus driver ✔
Automated
teller
machine
Small
business
owner
Tractor ✔
Construction
worker ✔
Printing
press ✔
Fertile land
Henry Ford
Farmer
Entrepreneurial
Resources
Student Name
3/18/2016
Warman/7
Cut and paste the Market qualities below the table into the correct group in the table:
Market Economy
Command Economy
Mixed Economy
Owners can get very rich
Government’s role is to remove barriers
Planned or managed economy
Supply and Demand are in control
Communism is an example of strong
Also called capitalism or private enterprise
Central Authority makes key decisions
Resources are privately owned
Incentives are competition and profit
Can’t run your own business
State takes care of people’s NEEDS
Government does not help out poor
Large companies can control prices
Not a lot of product choice
Entrepreneurship is encouraged
Unskilled and unable workers suffer
Market takes care of people’s WANTS
Socialism is an example of moderate
Class Discussion:
How can a change in supply increase a price? Give Examples:
How can a change in demand increase a price? Give Examples:
How does the command and market economy relate to Republicans and Democrats?