Period Worksheet Basic Economic Concepts 2]

[Pages:2]Name ____________________ Period _______

Worksheet ? Basic Economic Concepts

[Chapters 1 & 2]

Page #

1. (opinion) Name three things that are scarce in your life.

a. ___________________ b. ____________________ c. ____________________

5 2.The fundamental economic problem facing all societies is that of ________________.

6 3. A ______ is a basic requirement for survival & includes _______, ________, & ________.

6 4. A __________ is a way of expressing a need.

6 5. What does TINSTAAFL mean? ______ ___ ___ _____ _______ ____ __ _____ ______

6 6. The three basic questions every society must answer in dealing with scarcity are:

_________, _______, and ______ ________ to produce.

7 7. The resources required to produce the things we would like to have are called the

_______ __ __________ & include _______, _________, __________, & _________.

7 8. Capital goods["real capital"] include _______, ___________, ___________, & _________.

7 9. Financial capital - ________ used to buy the tools and equipment used in production.

10. List each term below in on of the table columns. No terms will apply to more than one column.

All columns will be filled.

Coal

Natural Gas

Hammer

Delta owner

Nurse

Doctor

Veterinarian

Computer

Delta pilot

Receptionist

River

Telephone operator

Oil

Delta plane

Tractor

Bill Gates Dallas Cowboys owner cook

Telephone

Forest

LAND

"Gifts of nature"

LABOR

"Hired Help"

CAPITAL

"Man-made inputs"

ENTREPRENEUR

(the "boss")

12 11. A __________ is an item that is economically useful. 12 12. A _______ good is for final use. A ______ good is used to produce other goods. 13 13. Utility - __________________________________________________________.

On page 15, there is a circular flow model for exchanges in the U.S. Choose an

answer from the right column that goes with the proper flow.

___ 14. Flow #1 ___ 15. Flow #2

A. Products(goods/services) sold B. Firms make payments (rent,

___ 16. Flow #3 ___ 17. Flow #4

Wages, interest, & profit) C. Consumer spending D. Households sell resources (land,

labor, capital, & entrepreneurial ability)

17 18. __________ _______________ means we rely on others[& they rely on us] to provide g/s. 19 19. _______________ are alternative choices we could make when making decisions. 20 20. _____________ _________ is the cost of the next best alternative(2nd best choice). 34 21. In a ___________ economy, what, how, & for whom is decided by ritual, habit, or custom. 34 22. Three examples of traditional societies are the __________, __________ & ___________. 34 23. What is the main advantage of traditional economies? ____________________________ 35 24. A __________ economy is one in which a central authority makes all decisions. 35 25. Two command economies are _________________ and _______________. 35 26. What is the main strength of a command economy? _______________________________

___ 27. At what letter can you get the most "capital goods"?

___ 28. What letter would represent underemployment or

a recession(not producing at full efficiency)?

___ 29. What letter could represent an advance in technology?

___ 30. At what letter can you get the "most consumer goods"?

___ 31. The opportunity cost of moving from "B" to "C" is

a. consumer goods gained

b. capital goods gained

c. capital goods given up

___ 32. Which of these answers represents all resources are

being used efficiently?

a. "D"

B. "E"

C. "A, B, & C"

___ 33. Producing at what letter today will give the most growth

in the future[have more productive resources]?

a. A

b. B

c. C

36 34. Give two disadvantages of the command economy. A. ___________________________________________________________________________ B. ___________________________________________________________________________

36 35. Give three advantages of the market economy. A. _____________________________________________________________________ B. _____________________________________________________________________ C. _____________________________________________________________________

Across with page numbers 1. productive resources (7) 10. natural resource not created by

human effort (7) 11. social science that studies human

efforts to satisfy wants (6) 12. money used to buy tools and

equipment used in production (7) 13. alternative choices (19) 14. basic requirement for survival (6) 16. people with efforts, abilities, and

skills (8) 18. worth of a good or service (13) 19. place for buying and selling a

product (14) 20. capacity to be useful (13)

Down with page numbers 2. transferable, useful, somewhat

scarce good or service (12) 3. risk-taker (8) 4. efficient use of resources (15) 5. division of labor (16)

6. items that last for less than three years (13) 7. condition caused by unlimited wants and limited resources (5) 8. process of using up goods and services (13) 9. work performed for someone (13) 15. sum of tangible, scarce, useful, transferable products (14) 17. means of expressing a need (6)

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