Assessment and Activities

Self-Check Quiz Visit the Economics: Principles and Practices Web site at and click on Chapter 2—Self-Check Quizzes to prepare for the chapter test. ^^ -^

Self-Check Quiz Visit the Economics: Principles and Practices Web site at and click on Chapter 2—Self-Check Quizzes to prepare for the chapter test. ^^ -^

Identifying Key Terms

On a separate sheet of paper, write the letter of the key term that best matches each statement below.

a. capitalism f. inflation b. command economy g. private property rights c. consumer sovereignty h. profit motive d. economic system i. traditional economy e. fixed income j. voluntary exchange

1. the idea that people rule the market

2. a society's organized way of providing for its people's wants and needs

3. the driving force that encourages people and organizations to try to improve their material well-being

4. a rise in the general level of prices

5. a system in which the factors of production are owned by private citizens

6. the right and privilege to control one's own possessions

7. an economic system in which ritual, habit, and custom dictate most economic and social behavior

8. an economic system in which a central authority makes economic decisions

9. the situation in which the money an individual receives does not increase even though prices go up

10. the act of buyers and sellers freely conducting business in a market

Reviewing the Facts

Section 1 (pages 33-39)

1. Describe the main strength and weakness of a traditional economy.

2. List the five major weaknesses of the command economy.

3. Describe how a market economy, a traditional economy, and a command economy adapt to change.

Section 2 (pages 41-44)

4. Describe the seven major economic goals which most Americans agree on.

5. Explain how society resolves the conflict among goals which conflict.

Section 3 (pages 46-51)

6. State how people and businesses benefit from economic freedom.

7. Explain the importance of the entrepreneur in a free enterprise economy.

8. Provide examples of how the government acts as protector, provider and consumer of goods and services, regulator, and promoter of national goals.

Thinking Critically

1. Drawing Conclusions Some people believe the profit motive conflicts with the goals of economic security and equity. Do you agree or disagree? Why or why not?

2. Understanding Cause and Effect How can the movement of people and the communication of ideas affect the type of economic system a society has?

3. Making Inferences What incentive does owning private property give people?



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  • Casimiro Zito
    What incentives does owning private propert give people?
    8 years ago

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