1. What is Economics

2.  Main Idea: Scarce resources affect everyone and economists simplify the world to help us understand it.

3.  Economics  Scarcity  Factors of production  Land  Labor  Goods  Services  Capital  Productivity  Entrepreneurship  technology

4.  How does what we want differ from what we need?  Give an example:  How does this affect choices we make as consumers?  How does scarcity affect us all?

5.  List and give a short description of the 4 factors of production a. b. c. d.

6. Main Idea: The effects of our economical choices are long lasting

7.  Trade-off  Opportunity cost  Production possibilities curve

8.  How can we relate trade offs and opportunity costs?  How can we show society’s trade off in a production possibilities curve?

9. Main Idea: Economists are social scientists who study the ways individuals and nations use their resources.

10.  Microeconomics  Macroeconomics  Economy  Economic model  hypothesis

11.  How do economists use models (charts and graphs) to study the real world?  Why do you think there are different types of economic thought?

13. Main Idea: We have many choices as consumers. Our choices make our economy different from other countries.

14.  Economic system  Traditional economy  Command economy  Market economy  Market  Circular flow of economic activity  Mixed economy

15.  What are the 3 questions that all economic systems must answer? a. b. c.

16.  What are the differences of the main economic systems? System: 1. 2. 3. 4. SimilaritiesDifferences

17. Main Idea: The American System is an economy based on a free market. A Seller can choose to make a product or not. A consumer can choose which products they want to buy.

18.  Capitalism  Laissez-faire  Free enterprise system  Profit  Profit incentive  Private property  competition

19.  What is the role of government in our free enterprise system?  How do freedom of enterprise and freedom of choice apply to the American Economy?  What roles do the following play in American Economy? A. Private property B. Profit incentive C. Competition

20. Main Idea: The US’ goals are evident in the Constitution, government policies, and actions of its people.

21.  Economic efficiency  Economic equity  Standard of living  Economic growth

22.  List and give a brief description of the major goals of a market economy:  A  B  C  D  E  F  G

23.  How can Americans balance economic rights with economic responsibilities?