Economics Study Guide 2015
Name: _________________________________
Market Terms
The inability to satisfy all wants and needs at the same time is ________________________.
Because all resources and goods are _______________, people must make choices.
_________________________ _______________ is what is given up when a choice is made. (The value or
benefit of the item not chosen.)
_____________________ is the amount of money exchanged for a good or service.
Things that motivate someone to buy are ___________________________.
The interaction of supply and demand determines __________________.
______________________________________ is the combining of resources to make goods and services.
The four types of resources are:
1.
2.
3.
4.
The using of goods and services is called _____________________________________________.
Economic Systems
The three basic questions all societies (economies) must answer are:
1.
2.
3.
The key factor in determining a country’s type of economy is the extent of __________________________
involvement in economic decisions.
In a ___________________________________ economy, people often perform the same work as their
parents and grandparents, regardless of interest or ability. Example: shepherd
In a __________________________________ economy, there is a centrally planned economy, central
ownership, and lack of consumer choice.
In a _________________ ______________________, also known as a market economy, the government’s
role is greater than in a free market and less than in a command economy.
Most economies, including the U.S., are ____________________ economies.
In a mixed economy, individuals and businesses are owners and decision-makers for the
_________________________ sector.
In a mixed economy, government is the owner and decision-maker for the ____________________
sector.
Characteristics of the U.S. Economy
1.______________________________ government involvement
2.______________________________ property
3 ______________________________ = earnings after expenses have been paid
4 ______________________________ = rivalry between producers and/or sellers of a good or service. This
usually results in _______________________ quality goods and services at _____________________ prices.
5. _____________________________ ___________________________ = consumers determine, through their
purchases, the goods and services that are produced.
Business Organization

A form of business organization with one owner who takes all of the risks and profits is a
_______________


______________________________. This owner’s liability is ________________.
A form of business organization with two or more owners who share the risks and profits is a
_____________________________________. The owners’ liability is ____________________.
A form of business ownership that is authorized to act as one legal entity is a
____________________________ . Owner liability is ________________________ to the amount of
each owner’s investment.
Circular Flow
Circular flow is the interaction of ___________________________ (households),
______________________ (producers), and ______________________________.


When individuals and businesses save and invest, that money can be borrowed for business
________________________________ and individual ___________________________. (We buy more
stuff.)
Individuals own and sell the ______________________________ used in production and use the
income to purchase products.


Businesses buy resources, make products to sell to __________________________, other
____________________________, and the ________________________________ and use the profits to
buy more resources.
Governments use __________________ __revenue to provide ____________________ goods and
services.
Financial Institutions
(Banks, credit unions, savings & loans)
Financial institutions channel funds from _______________________ to ______________________________.
Financial institutions receive ______________________________ and make ____________________.
Financial institutions encourage saving and investing by paying __________________________ on money
deposited by customers.
Global Economy
Virginia and the U.S. pursue ______________________________ _________________ in order to increase
_______________________.
States and nations trade in order to:




obtain good and services they cannot _____________________ or cannot produce
____________________________.
buy goods and services at a ____________________ cost or a lower
_____________________________________ cost.
Sell goods and services to other countries
Create _______________________________
Virginia and the U.S. specialize in the production of certain goods and services. This promotes
______________________________ and __________________________.
Use of technology contributes to the global flow of ________________________,
_____________________________, ____________________, and ____________________.
The use of technology also _____________________________ the cost of production.
Money
Three types of money used in the U.S. are _______________, F__________________ R____________________
N_______________ (currency) and ________________________ in bank accounts that can be accessed
by checks and debit cards.
The government (Legislative & Executive) passes laws and creates agencies to product consumer
rights.
Government agencies (Executive) establish guidelines that protect public ____________________ &
__________________.
Careers & Finances
Career planning begins with _____________-_____________________________.
(This means an awareness of personal interests, talents, and skills.)
Higher skill and/or education levels usually lead to higher ___________________________.
Supply and demand also influence job __________________________.
Advances in technology create new _________________.
Technology makes it possible for people to work across _____________________________ borders. This
creates ___________________________________ among workers.
Being fiscally responsible includes making careful __________________ decisions, _____________________
and _______________________ for the future, keeping to a ___________________, using
______________________ wisely, and understanding how contracts and warranties can protect
individuals.