Name ____________________________
Economics Study Guide
Answer questions on this sheet or on a separate sheet of
paper.
1. What is scarcity?
2. What happens to demand when prices rise?
3. What happens to supply when prices rise?
4. Give two examples of natural resources.
5. Give two examples of capital resources.
6. Give two examples of human resources.
7. What is opportunity cost?
8. What can you find when supply meets demand? (two things)
9. Is a producer a buyer or seller? (circle answer)
10. Is a consumer a buyer or seller? (circle answer)
11. What is the different between a want and a need?
12. What is the difference between a good and a service?
13. What is an incentive? Give an example.
14. What is the term we use for “factors of production used to make goods and provide services”?
15. Who owns resources and property if they are publicly owned?
16. Who owns resources and property if they are privately owned?
17. What is the most common economic system in the world?
18. Which
economic system is the least like the
system used in the
19. What is profit?
20. What is consumer sovereignty?
21. What is the difference between a proprietorship, partnership, and a corporation?
22. What types of risks do entrepreneurs face?
23. What benefits does competition between sellers provide for consumers?
24. Name at
least three situations where the
25. In which type of business can you buy stock?
26. In “The Wealth of Nations,” Adam Smith’s idea of capitalism includes the idea of “laissez-faire.” What does “laissez-faire” mean?
27. What is GDP?
28. What is GDP per capita?
***Match the following with the correct type
of economy.
C—Command
FM—Free Market
MX—Mixed
_____ 29. lack of consumer choice
_____ 30. government control
_____ 31. little or no government control
_____ 32. most common system
_____ 33. consumer sovereignty
_____ 34. profit and competition
_____ 35. private ownership of property/resources
_____ 36. public ownership of property/resources
_____ 37. centrally planned economy
_____ 38. businesses and individuals share decision making