Chapter 13 Review Questions What Is an Economy? Why do societies have economies? Explain how a person goes from having an economic want to actually getting what they want? What are some basic economic questions you should ask before starting a business? How is a Command Economy different than a Market Economy?

Chapter 14 Basics of Our Economic System

Section 1 The Principles of Our Market Economy *Key Idea* A market economy is based on an exchange of labor, wages, capital, goods, and services – all regulated by laws of supply and demand.

Supply and Demand Demand Supply Market Price The amount of a product / service that buyers are willing and able to buy at different prices Ex: Ipad mini for $100 = high demand Supply The amount of a product that produces are willing and able to offer at different prices Ex: Ipad mini for $100 = low supply Market Price Price at which buyers and sellers agree to trade

Section 2: The Role of Business in the American Economy *Key Idea* In a market economy, goods and services are produced by privately owned businesses.

Basic Forms of Private Businesses Sole Proprietorship Business is owned by an individual Most Common (about 70%) Ex: Bill’s Hot Dogs Partnership 2 or more people share business ownership. Ex: Bill and Jane’s Hot Dogs Corporation Legally acts as a single person but is owned by many stockholders Ex: Bill and Jane’s Hot Dogs Incorporated

Section 3 Labor in the American Economy *Key Idea* Because industrialization changed the way Americans worked, many workers have tried to form labor unions to improve their working conditions and earn better pay, although business owners have often opposed them.

Labor Unions vs. Management Weapons of Labor Ask people to boycott the companies goods Go on strike Weapons of Business Hire new employees Force employees to agree not to join unions

Changes in Our Labor Force Farmers now only 3% of labor force Increasing number of women in work force Decline of manufacturing (Steel Making) Increase in service providers (banks)

Quick Review of Ch. 14 Explain how supply and demand impacts our economy? What’s the difference between a partnership and a corporation? What is the purpose of labor unions?

Ch. 14 Assessment Page 398 Complete # 1 – 12 Reviewing Key Terms Write out the sentence with correct term underlined. Comprehension and Critical Thinking Write out the question and your response. * Turn in for a grade when completed.