Economics Study Guide
LT1: I can differentiate between a traditional, command, market, and mixed economy. SS-8-3.2.1
1. Define capital.
2. List 3 things you know about a traditional economy.
3. List 3 things you know about a command economy.
4. List 3 things you know about a market economy.
5. Why is the US considered a mixed economy?
6. The former USSR had this type of economy.
LT2: I can illustrate how goods and services are produced, distributed, and consumed. SS-8-3.4.1
7. Define good 8. Define service9. Define wantIdentify the land, labor and capital of a haircut:
10. Land 11. Labor 12. Capital LT3: I can explain how competition impacts economic decisions for producers and consumers. SS-8-3.1.1 & SS-8-3.1.2
(8.EDM.5)
“County Raises Property Taxes”
“England Places Tariff on US Imports”
“Kentucky’s Shortfall Budget”
13. The newspaper headlines above relate to______________________________.
14. Producers offer extrinsic rewards for buying their product. List 3 extrinsic wants.
15. Why does scarcity exist?
16. Owingsville loses its only factory. Why will businesses lose sales?
17. Define opportunity cost. Do producers have an opportunity cost?
18. What is the MAIN reason businesses compete?
LT4: I can explain how money is used to make saving, borrowing, and investing easier. SS-8-3.3.2
19. List the 6 characteristics of money.
20. What does the picture above illustrate?
21. What do people NOT use when they barter?
LT5: I can explain how price is affected by supply and demand. SS-8-3.3.1 & SS-3-3.3.3
22. Sally owns a store and sells blue jeans. Instead of selling lots, she chargers $1000 for just one pair. What basic
economic principle does Sally not understand?
23. If an item is trendy, what will happen to its cost?
24. Why does the cost of gas increase in the summer?
25. Define law of supply
26. Define law of demand.
27. Define market price.
LT6: I can explain the government’s role in the economy. (8.EDM.6)
28. What government agency controls the amount of money that gets printed?
29. A ________ is a charge to fund the public need.
30. Where does the US spend most of its money?
31. Which government agency regulates the economy by controlling interest rates?
32. When interest rates are high ___________