Chapter 19 Review 56 Slides in 45 minutes 40 Question Test Time is a valuable economic resource don’t waste it.

 Property rights are a key element of capitalism and is protected in the Constitution under the Bill of Rights

Factors Of Production Natural Resources Human Resources Entrepreneurs Capital Land Minerals Water Oil Laborers Owner Ideas Tools Equipment Technology Specialization

 Consumer goods satisfy the consumers wants and needs. Such as… ◦ Food, clothes, shelter, jewelry, cars  Capital goods are used to satisfy the producers needs. Such as… ◦ Farm equipment, cloth, coal, oil, water

 Factor markets are different from product markets because factor markets are where producers buy the supplies they need to create a product.  Product markets are those in which workers and consumers buy the products and services that they want and need.

 Economic freedom is the right to choose the type of job or occupation one desires, as well as when and where to work.

 Education increases ones economic freedom.

Economic Sectors ConsumersBusinessForeignGovernment Largest Sector Smallest Sector

 When people know they have the right to own and use property, they feel motivated to work, save, invest in property, and enjoy the rewards that come with ownership.

To analyze how the economy is doing.

Capitalism Features Economic Freedom Private Property Voluntary Exchange Profit Motive Competition Free Markets Right protected in the 4 th Amendment of the Constitution

Gross Domestic Product (GDP) Productivity Standard Of Living

 Goods Goods  Services Services  Factors of production Factors of production  Natural resources Natural resources  Labor Labor  Capital Capital  Entrepreneur Entrepreneur  Gross Domestic Product (GDP) Gross Domestic Product (GDP)  Standard of living Standard of living  Market Market  Factor market Factor market  Product market Product market  Productivity Productivity  Specialization Specialization  Division of labor Division of labor  Economic interdependence Economic interdependence

 Tangible product that we use to satisfy our wants and needs. Vocabulary

 Work performed by a person for someone else. Vocabulary

 Resources necessary to produce goods and services. Vocabulary

 The “gifts of nature” that makes production possible. ◦ Air ◦ Water ◦ Minerals ◦ Time ◦ Land Vocabulary

 Human effort directed toward producing goods and services. Vocabulary

 Previously manufactured goods used to make other goods and services. Vocabulary

 Free and willing exchange of goods and services between buyers and sellers. Vocabulary

 Individual who starts a new business, introduces a new product, and improves a management technique. Vocabulary

 Total dollar value of all final goods and services produced in a country during a single year. Vocabulary

 The material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied. Vocabulary

 A market where productive resources are bought and sold. Vocabulary

 When people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else. Vocabulary

 The degree to which resources are being used efficiently to produce goods and services. Vocabulary

 A system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits. Vocabulary

 The breaking down of a job into separate, smaller tasks to be performed individually. Vocabulary

 A reliance on others, as they rely on you to provide goods and services to be consumed. Vocabulary

 A market where producers offer goods and services for sale. Vocabulary

 The role of consumer as the ruler of the market, determining what products will be produced. Vocabulary

 The freedom to own and use our own property as we choose as long as we do not interfere with the rights of others. Vocabulary

 The struggle that goes on between buyers and sellers to get the best products at the lowest prices. Vocabulary

 The driving force that encourages individuals and organizations to improve their material well-being. Vocabulary

 Economic system where government should not interfere in the marketplace. Vocabulary

 The act of buyers and sellers freely and willingly engaging in market transactions. Vocabulary

 The money a business receives for its products or services over and above its costs. Vocabulary

 Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference. Vocabulary

a) total output of goods and services increases. b) total output matches total input. c) human resources exceed their natural resources. d) imports equal their exports.

a) Service b) Capital c) Consumer d) Final

a) fees collected from citizens using its services. b) the factor market. c) taxes on individuals and businesses. d) the product market.

a) permitting consumers to control the product market. b) setting limits on competition among consumers. c) allowing consumers to demand competitive prices. d) providing incentives to make, save, and spend money.

a) Consumer b) Business c) Government d) Foreign

a) divide large jobs into small, separate tasks. b) focus on what they do best. c) offer incentives to workers. d) become self-sufficient.

a) Individuals may buy and sell property without paying taxes. b) Businesses may compete without government interference. c) Buyers and sellers may conduct business voluntarily in the marketplace. d) Individuals may start new business ventures at no cost.

a) Workers lose jobs. b) Productivity goes up. c) Labor costs increase. d) The GDP goes down.

a) Division of labor b) Specialization c) Human capital investment d) Economic interdependence

a) Business b) Consumer c) Foreign d) Government

a) Production factor b) Human resource manager c) Entrepreneur d) laborer

a) Inputs and outputs b) Factors of production c) Factor markets d) Product markets

a) Profit motive b) Competition c) Free enterprise d) Voluntary exchange

a) Grants financial assistance b) Offers no assistance c) Takes over the business d) Restricts competition

a) The Carrillo family can buy everything they want and need. b) The Vazquez family lives' within walking distance of the public library. c) The Colunga family is happy that neighborhood crime is on the decline. d) The Ayala family enjoy the warm winters of Michoacan.

a) Practice innovation in their purchasing strategies. b) Exercise their economic freedom. c) Set the prices of goods and services. d) Determine what products will be produced.

a) Back and forth b) Sequential c) Circular d) Linear

a) support laborers. b) encourage trade. c) stay out of the marketplace. d) help small and large businesses alike.