Name _________________________ Date _________ Period ___

INTRO TO ECONOMICS / ECONOMIC SYSTEMSStudy Guide

Terms: For each of the following write WHAT it means, and WHY it is important1. Economics:

2. Goods:

3. Services:

4. Resources:

5. Consume:

6. Scarcity:

7. Allocate:

8. Opportunity Cost:

9. Capital Resource:

10. Natural Resource:

11. Needs:

12. Substitute:

13. Economic System:

14. Barter:

15. Financial Institution:

True or False: Decide if the Statement given is (T) True, or (F) False

16. All resources are limited. ___17. Consume and Allocate are the same thing. ___18. A Producer can also be a Consumer. ___19. A farmer who grows apples only to sell them is a consumer of apples. ___20. Some wants can satisfy basic needs as well. ___21. You enjoy “Reading Time” at UMA. ___22. You can allocate something for a purpose without actually using it. ___23. Scarcity exists in all economies. ___24. Humans have unlimited wants and needs. ___25. The New York Yankess are the best MLB team. ___26. Because of scarcity people have to make choices. ___27. A mixed economic system combines the Traditional and the Command systems. ___

Economic Systems: Decide if each statement describes a (T) Traditional Economy, (M) Market Economy, (C) Command Economy, or (X) Mixed Economy

28. Based on Agriculture. ___29. Based on Supply and Demand. ___30. Focused on Industrial Goods. ___31. Focused on Consumer Goods. ___32. Very tricky to balance. ___33. The United States has this type. ___34. China has this type. ___35. An island culture has this type. ___36. Government allocates resources. ___37. A yard sale would be this type. ___38. Little or no government control. ___39. Has Market AND Command Elements. ___40. Government directs Industry and “needs” while consumers direct “wants”. ___41. Relies on Barter. ___42. Has little or no waste. ___43. Has little unemployment. ___

Short Answer: 44. What are the Three Big Questions of Economics?

a. b. c.

45. Give an example of a Natural Resource, as well as a Capital resource.a. Natural Resource: b. Capital Resource:

46. What is the difference between a WANT and a NEED?

47. What are the three parts to an Economic System?a. b. c.

48. If you were living in an Island Economy, what would YOU produce?

49. What is your favorite extra-curricular activity at UMA, and WHY?

50. Short Essay: Choose ONE of the topics below and write a SHORT response to it. Proper English IS important, but more important is having a clear opinion and being able to defend it intelligently.

a. Do you agree or disagree that time is a Resource, and why?b. How does Economics affect YOUR life?c. Which Market System is the best, and why?

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________WHICH ESSAY LETTER WILL YOU CHOOSE? _ ________________________________________________________________________________________________________________________WHAT IS YOUR OPINION? ______________ ________________________________________________________________________________________________________________________ KEY TERMS YOU SHOULD USE : __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

You do NOT have to write a practice Essay.

However, you DO have to choose which

essay you will write

about, and note the

terms that will be

important