1. Chapter 3 Review
The Economy

2. Terms to Know Well Recession Inflation Depression
Sticky Floor Syndrome
Glass Ceiling
Equal Employment
Ethics

3. True/False
The principle of private property is essential to our capitalistic system.
Profit is important to our economic system.
Demand is the same as want.
Competition is the same as monopoly.
Economic growth is basic to a healthy economy.
Demand increases; profit increases.

4. True/False Business cycles last about 3 years.
Decline in the GDP for six months or more is called a recession.
If demand drops; profits drop.
The business cycle includes 5 cycles.
During inflation, supply exceeds demand.
We can control economic growth by raising or lowering taxes.

5. True/False
Competition is the rivalry among sellers for consumers’ dollars.
When supply and demand meet, it is called the “Market Price”.

6. Complete CPI means GDP means CERES Principles refers to
Generation X is _______ loyal.
Baby Boomer dates:
Labor Force means
Poverty level is under $______

7. Complete Define “Ethics” Give me a “Changing American Value”.
What is our most important resource?
The US is divided into three main sections. They are:
What is “privatization”?
List the three economic systems.
List the three political systems.

8. Complete What are the four basic resources used by a producer?
An example of a capital good _____
The first company to voluntarily agree to follow the CERES Principles ______

9. Draw
Draw and label the business cycle