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. Wants:

12. Needs:

13. Substitute:

14. Economic System:

15. Barter:

16. Financial Institution:

True or False: Decide if the Statement given is (T) True, or (F) False17. All resources are limited. ___18. Consume and Allocate are the same thing. ___19. A Producer can also be a Consumer. ___20. A farmer who grows apples only to sell them is a consumer of apples. ___21. Some wants can satisfy basic needs as well. ___22. You enjoy “Reading Time” at UMA. ___23. You can allocate something for a purpose without actually using it. ___24. Scarcity exists in all economies. ___25. Humans have unlimited wants and needs. ___26. You are happy that the Eagles beat the Patriots in the Super Bowl. ___27. Because of scarcity people have to make choices. ___28. 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

29. Based on Agriculture. ___30. Based on Supply and Demand. ___31. Focused on Industrial Goods. ___32. Focused on Consumer Goods. ___33. Very tricky to balance. ___34. The United States has this type. ___35. China has this type. ___36. An island culture has this type. ___37. Government allocates resources. ___38. A yard sale would be this type. ___39. Little or no government control. ___40. Has Market AND Command Elements. ___41. Government directs Industry and “needs” while consumers direct “wants”. ___42. Relies on Barter. ___43. Has little or no waste. ___44. Has little unemployment. ___

Short Answer: 45. What are the Three Big Questions of Economics?

a. b. c.

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

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

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

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

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

51. 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