Economics Unit Notes

Name: ____________________________Period: ____

Read the description and identify which economic system is being described and write it above each description. 1. A society in which most economic decisions are based on customs. 2. A society in which the government makes the economic decisions. 3. A society in which economic decisions are made by individuals and businesses. 4. A society in which economic decisons are made by individuals and businesses with some government regulations.

Read the description and identify which type of business is being described and write it above each desription. 5. A business owned by one person. 6. A business that has two or more owners that share risks and profits. 7. A business owned by stockholders (investors) whose risk is limited to the amount of their investment. 8. A business owned by the people that use its services.

Label the pictures below as "producer" or "consumer".

9.

10.

11. ___________________________ means that resources are limited. 12. Because of scarcity, people, businesses, and government have to make _____________________. 13. When you give up a second choice, that choice is called ___________________________ __________. 14. ______________________ ______________________ are provided by nature. 15. ______________________ ______________________ are the tools and equipment a business uses to produce goods or services.

16. ______________________ ______________________ are the labor and skills people provide to businesses. 17. The diagram shows the _____________________ ______________ in economics. 18. Households sell _____________________ and _______________________ to businesses. 19. Households buy ____________________ and _______________________ from businesses.

20. ______________________ is determined by producers. 21. ______________________ is determined by consumers. 22. ______________________ is determined by the interaction of supply and demand.

Use the Demand Schedule and Supply Schedule to find the equilibrium price on the graph. Demand Schedule Price $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Supply Schedule Price $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

Price ($)

Quantity Demanded 4,000 2,500 1,750 1,250 800 500

Quantity Supplied 500 1,700 2,500 3,100 3,600 4,000

750

1500

2250

3000

3750

4500

Quantity