1. 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?

2. Chapter 14 Basics of Our Economic System

3. 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.

4. 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

5. 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.

6. 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

7. 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.

8. 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

9. 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)

10. 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?

11. 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.