Student Name11/6/2018Warman/7

Principles of Business, Marketing & Finance

Chapter 2 Study Guide

Instructions: Cut & Paste the Vocabulary Words to the definitions

  • shortage of resources

  • the resources used to produce goods and services

  • raw materials from nature used to produce goods

  • examples include wheat and cattle

  • examples include oil, iron, coal

  • the knowledge, efforts, and skills people provide

  • things such as buildings, materials, and equipment used to produce goods and services

  • people who recognize the need for new resources, risk-takers

  • the study of how society chooses to use resources

  • a system in which economic decisions are made in the marketplace according to the laws of supply and demand

  • the amount of goods and services that consumers are willing to buy at various prices

  • the amount of goods and services that producers will provide at various prices

  • when the quantity demanded and quantity supplied meet

  • a system in which a central authority such as government makes the key economic decisions

  • combination of a command and market economy

capital resourceshuman resources

command economymarket economy

demandmixed economy

economicsnatural resources

entrepreneurial resourcesnonrenewable resource

equilibrium pricerenewable resource

factors of productionscarcity

supply

Highlight the four factors of production in your vocabulary table.

CHAPTER2 Economic Resources and Systems

Put a Check Mark in the appropriate Column

Natural
Resources / Human
Resources / Capital
Resources / Entrepreneurial
Resources
Tree ✔
Office building ✔
Water ✔
Magazine publisher ✔
Teacher ✔
Oil rig ✔
Corporate manager ✔
Fish ✔
Bus driver ✔
Automated teller
machine
Small business
owner
Tractor ✔
Construction worker ✔
Printing press ✔
Fertile land
Henry Ford
Farmer

Cut and paste the Market qualities below the table into the correct group in the table:

Market Economy / Command Economy
Mixed Economy

Owners can get very rich

Government’s role is to remove barriers

Planned or managed economy

Supply and Demand are in control

Communism is an example of strong

Also called capitalism or private enterprise

Central Authority makes key decisions

Resources are privately owned

Incentives are competition and profit

Can’t run your own business

State takes care of people’s NEEDS

Government does not help out poor

Large companies can control prices

Not a lot of product choice

Entrepreneurship is encouraged

Unskilled and unable workers suffer

Market takes care of people’s WANTS

Socialism is an example of moderate

Class Discussion:

How can a change in supply increase a price? Give Examples:

How can a change in demand increase a price? Give Examples:

How does the command and market economy relate to Republicans and Democrats?