Economics CHAPTER 2 economic systems and decision making REVIEW GAME

Find a partner. Place all game pieces facing you on your desk. Select the best answer from the game pieces on your desk. If an answer is used more than once, you have more than one game piece with such answer. The person with the most correct answers at the end of the game wins.

1. Actions in this type of economy relate to ritual, habit and custom.

TRADITIONAL ECONOMY

2. A strength of this type of economy is its ability to rapidly change in a short period of time

COMMAND ECONOMY

3. A weakness of this economy is its failure to provide for the weak, the sick, the old and the very young who cannot be productive

Market economy

4. Name a stable, predictable and continuous economic system

TRADITIONAL ECONOMY

5. This economic system does not meet the needs and wants of citizens because the central authority makes all decisions, rather than the individual

COMMAND ECONOMY

6. This economic system discourages new ideas or change

TRADITIONAL ECONOMY

7. This economic system provides a high degree of consumer satisfaction because individuals make most of the decisions

Market economy

8. This economic system offers a variety of goods and services because new ideas are encouraged

Market economy

9. This economic system lacks incentive for individuals because a central authority controls the factors of production; there is no private property

COMMAND ECONOMY

10. This economic system has a notable lack of government interference

Market economy

11. What is the most important economic goal of a Market Economy?

ECONOMIC FREEDOM

12. WHAT ECONOMIC GOAL DOES A RECYCLING PROGRAM PROMOTE?

ECONOMIC EFFICIENCY

13. Which economic goals does the opening of an automobile manufacturing plant promote?

Economic growth Full Employment

14. Social Security was designed to promote which economic goal?

Economic security

15. Inflation is a problem when an economy is trying to establish which economic goal?

Price Stability

16. THIS GOAL MEANS EVERYONE WHO WANTS TO WORK IS WORKING

FULL EMPLOYMENT

17. LAWS THAT PROTECT AGAINST DISCRIMINATION ARE AIMED AT ACHIEVING THIS ECONOMIC GOAL

ECONOMIC EQUITY

18. An organized way a society provides for the wants and needs of its citizens

Economic System or Economy

19. A ________ __________ means that the amount of money you live on month to month does not change.

FIXED INCOME

20. A general rise in the level of prices, which hinders price stability.

INFLATION

21. A U.S. program that provides Economic Security in a capitalist economic system and is paid for by taxes; like a government retirement system

SOCIAL SECURITY

22. This means people control their possessions as they wish and it plays an important role in a Market System

PRIVATE PROPERTY

23. The driving force that encourages people to improve their material well being

PROFIT MOTIVE

24. This group exercises its power in a market system by spending its money

CONSUMERS

25. Because some government regulation occurs, the economic system of the United States is called a “_____________ ________ ________” or “Mixed” Economy.

Modified Private Enterprise

26. This role player is important in a mixed economy because they create jobs, goods/services and tax money through their actions.

ENTREPRENEURS

27. The mutual benefit of a transaction between a buyer and seller is called _________ ______________.

Voluntary Exchange

28. ___________ refers to ownership of resources (land, labor, capital) by private citizens rather than government.

Capitalism

29. The opening of a new business promotes Economic ______ and Full Employment.

GROWTH

30. Movie ticket prices increasing by 15% hurts ____ Stability.

PRICE

31. The goal of Economic _____________ relates to an employer being sued for discrimination.

EQUITY

32. One of the four features of capitalism is this economic goal.

ECONOMIC FREEDOM

33. A Toyota Prius, a hybrid car, illustrates this goal as to fuel.

ECONOMIC EFFICIENCY

34. WHEN THE GOVERNMENT GIVES JOBS TO EVERYONE WILLING AND ABLE TO WORK, THIS GOAL IS MET.

FULL EMPLOYMENT

35. THE FOUR FACTORS OF PRODUCTION

LAND, LABOR, CAPITAL, ENTRPRENEURSHIP

36. The fundamental economic problem of limited resources but unlimited wants and needs

SCARCITY

37. Economic words to describe choices and the second best alternative that you give up.

TRADEOFFS AND OPPORTUNITY COSTS