Civics Economics CE 11 14 SOL Review 2

Civics & Economics CE. 11 -14 SOL Review #2 The White Study Guide

CE. 11 a – Economic Terms The inability to satisfy all wants at the same time? Scarcity Factors of production like natural, human, capital, and entrepreneurship? Resources

CE. 11 a – Economic Terms Making a selection from a set of possible alternatives? Choice The cost of what is given up when a choice is made? Opportunity Cost

CE. 11 a – Economic Terms Combining resources to produce goods or services? Production Using of goods and services? Consumption

CE. 11 a – Economic Terms We have unlimited wants, but resources, goods and services are… limited Scarcity forces everyone to make difficult… choices

CE. 11 a – Economic Terms Available resources and consumer preferences determine what is… produced Consumer preferences and price determine what is… consumed

CE. 11 a – Economic Terms What type of resource are wood, coal, oil and iron? Natural What type of resource are the workers who produce goods and services? Human

CE. 11 a – Economic Terms What type of resource are tools, equipment, buildings, and machinery? Capital What type of resource are business owners who produce goods and services? Entrepreneurship

CE. 11 b - Characteristics of Major Economic Systems What are the 3 basic questions of economics? 1. What will be _____? produced 2. How will it be _____? produced 3. For whom will it be _____? produced

CE. 11 b - Characteristics of Major Economic Systems What is the major difference between countries and their economic systems? Government Involvement Identify the Economic System: Individuals have the most power in economic decision making in a… Free Market Economy

CE. 11 b - Characteristics of Major Economic Systems The government have the most power in economic decision making in a… Command Economy Economic decisions based on custom and historical precedent in a… Traditional Economy

CE. 11 b - Characteristics of Major Economic Systems People, regardless of their own ability, often do the same type of work as their parents and grandparents? Traditional Economy Private ownership of property/resources? Free Market Economy

CE. 11 b - Characteristics of Major Economic Systems Central ownership of property/resources? Command Economy Businesses and individuals are owners and decision-makers for the private sector, but the government is the owner and decision maker for the public sector? Mixed Economy

CE. 11 b - Characteristics of Major Economic Systems Economy with the least government involvement? Free Market Economy Centrally planned economy? Command Economy

CE. 11 b - Characteristics of Major Economic Systems Greater government involvement than a Free Market Economy, but less than a Command Economy? Mixed Economy Profit, competition, consumer sovereignty, and individual choice? (HINT: Two Answers) Free Market Economy and Mixed Economy

CE. 11 b - Characteristics of Major Economic Systems Lack of consumer choice? Command Economy Most common economic system in the world today? Mixed Economy

CE. 11 b - Characteristics of Major Economic Systems The United States has many characteristics of a Free Market Economy, but is considered a… Mixed Economy CE. 12 a - Characteristics of the U. S. Economy What exists wherever buyers and sellers exchange goods and services? Markets

CE. 12 a - Characteristics of the U. S. Economy Markets are generally allowed to operate without undue interference from the… government Who can intervene in a market when the perceived benefit outweighs the anticipated costs? Government

CE. 12 a - Characteristics of the U. S. Economy What is determined by supply and demand when buyers and sellers interact in the market? Price What do individuals and businesses in the United States have the right to own? Private Property

CE. 12 a - Characteristics of the U. S. Economy What do businesses in the United States want to earn? (Hint: Earnings minus expenses) Profit What is a rivalry between producers/sellers? Competition What are two results of competition? Lower Prices, Better Quality

CE. 12 a - Characteristics of the U. S. Economy The power of buyers to determine what is produced through their purchases? Consumer Sovereignty Government involvement in the economy in United States is… limited

CE. 12 a - Characteristics of the U. S. Economy Most economic decisions in the United States are made by individuals and business for the… private sector CE. 12 b – Supply and Demand Amount of money exchanged for goods or services? Price

CE. 12 b – Supply and Demand Price is determined by the interaction of… supply and demand Amount of a good or service that consumers are willing and able to buy? Demand

CE. 12 b – Supply and Demand Price is determined by the interaction of… supply and demand Amount of a good or service that consumers are willing and able to buy? Demand

CE. 12 b – Supply and Demand Amount of a good or service that producers are willing and able to provide? Supply What law states consumers will buy more at lower prices and less at higher prices? Law of Demand

CE. 12 b – Supply and Demand What law states producers will produce more when prices are high and less when prices are low? Law of Supply What is the point where supply and demand meet? (X) Equilibrium Price

CE. 12 b – Supply and Demand At the equilibrium price, everyone who wants to can… buy and sell CE. 12 c - Types of Business Ownership A person who takes a risk in order to make a profit? Entrepreneur

CE. 12 c - Types of Business Ownership Entrepreneurs provide new products and services which increase _____ plus promote technological and economic _____. Answer #1 – competition Answer #2 - growth One owner who takes all risks and profits? Sole Proprietorship

CE. 12 c - Types of Business Ownership Two or more owners who share risks and profits? Partnership Type of business that acts as a “legal person” or “legal entity” regardless of the number of owners? Corporation

CE. 12 c - Types of Business Ownership Corporations share profits, but liability (risk) is _____ to the investment. limited CE. 12 d - Economic Flow _____ involves resources, goods, services, and money continuously moving between businesses, individuals, and the government. Economic flow

CE. 12 d - Economic Flow Who owns resources, sells resources, and uses the income to purchase products? Individuals Who buys resources, makes products to sell, and uses the profits to purchase more resources? Businesses

CE. 12 d - Economic Flow Who uses tax revenue to provide public goods and services? Government CE. 12 e - Private Financial Institutions What are banks and credit unions? private financial institutions

CE. 12 d - Economic Flow Who uses tax revenue to provide public goods and services? Government CE. 12 e - Private Financial Institutions What are banks and credit unions? private financial institutions

CE. 12 e - Private Financial Institutions What are banks and credit unions? private financial institutions Private financial institutions bring together… savers and borrowers

CE. 12 e - Private Financial Institutions Private financial institutions receive _____ and make _____. Answer #1 – deposits Answer #2 – loans Private financial institutions encourage saving and investing by _____ on deposits. paying interest

CE. 12 e - Private Financial Institutions Who helps provide financial capital (money) to people/businesses to start or grow businesses? Private Financial Institutions CE. 12 f - International Trade What is the worldwide selling of goods and services? Global Economy

CE. 12 f - International Trade Virginia and the United States pursue international trade in order to increase… wealth Nations trade in order to buy goods at a _____ or goods they cannot _____ themselves. Answer #1 – lower cost Answer #2 - produce

CE. 12 f - International Trade Selling goods to other nations helps create… new jobs When companies in the United States specialize in producing certain goods and services it promotes… efficiency and growth

CE. 12 f - International Trade Technology _____ the cost of production. lowers Innovations in _____ like the internet contributed to the global flow of information, capital, goods, and services. technology

CE. 13 a – Competition in the Marketplace The government promotes competition by enforcing _____ laws to discourage the development of _____. Answer #1 – anti-trust Answer #2 – monopolies The government promotes competition by encouraging _____ and supporting _____. global trade business start-ups

CE. 13 a – Competition in the Marketplace Government agency that regulates communications by radio, TV, phone, and other means? Federal Communication Commission (FCC) Government agency that protects investors and regulates the securities market? Securities Exchange Commission (SEC)

CE. 13 a – Competition in the Marketplace Government agency that protects consumers from unfair business practices? Federal Trade Commission (FTC) CE. 13 b - Public Goods and Services Highways, postal service, and national defense are examples of… public goods and services

CE. 13 b - Public Goods and Services Public goods and services benefit _____ and would NOT be _____ if individuals had to provide them. Answer #1 – many people Answer #2 - available What is the primary way the government pays for public goods and services? Tax Revenue

CE. 13 b - Public Goods and Services How else does the government pay for public goods and services? Borrowed Funds, Fines, and Fees CE. 13 c – Revenue for Public Goods and Services Tax individuals and businesses pay based on the money they earned? Income Tax

CE. 13 c – Revenue for Public Goods and Services Tax consumers pay on items they purchased that is based on a percentage of the sales price? Sales Tax Owners of land, buildings, boats, and cars pay a… Property Tax

CE. 13 c – Revenue for Public Goods and Services The main revenue source for the federal government? Income Tax The main revenue sources for the state government? Income Tax and Sales Tax

CE. 13 c – Revenue for Public Goods and Services The main revenue sources for local governments? Property Tax and Sales Tax Who uses tax revenue to pay for public health, education, and welfare? State and Local Governments

CE. 13 c – Revenue for Public Goods and Services Who uses tax revenue to pay for national defense and homeland security? National Government Who uses tax revenue to pay for road construction? State and Local Governments

CE. 13 c – Revenue for Public Goods and Services Who uses tax revenue to pay for Social Security and Medicare? National Government Who uses tax revenue to pay for public safety, including police and fire departments? State and Local Governments

CE. 13 c – Revenue for Public Goods and Services Who government uses tax revenue to pay for interest payments on the national debt? National Government CE. 13 d - The Federal Reserve What is the federal government’s bank and the central bank of the United States? The Federal Reserve

CE. 13 d - The Federal Reserve provides _____ to other banks and the federal government. financial services The Federal regulates banks to make sure deposits are _____ and banking systems are _____. Answer #1 – safe Answer #2 - sound

CE. 13 d - The Federal Reserve influences the money supply and interest rates in the economy to keep inflation… low and stable The _____ of the Federal Reserve is appointed by the President and approved by the Senate. Chairperson

CE. 13 d - The Federal Reserve is led by the Chairperson and… Board of Governors How many federal reserve banks are part of the Federal Reserve System? 12

CE. 13 e - Protection of Consumer Rights and Property Rights The right to own private property is protected by _____ that are enforceable by the _____. Answer #1 – negotiated contracts Answer #2 - law Government agencies establish guidelines to promote competition and protect public… health and safety

CE. 13 e - Protection of Consumer Rights and Property Rights Consumers whose rights are violated can take… legal action What government agency is responsible? Make sure products are safe? Consumer Product Safety Commission (CPSC)

CE. 13 e - Protection of Consumer Rights and Property Rights Make sure food and drugs are safe? Food and Drug Administration (FDA) Keep people safe in the workplace? Occupational Safety & Health Administration (OSHA)

CE. 13 e - Protection of Consumer Rights and Property Rights Prevent discrimination in the workplace? Equal Employment Opportunity Commission (EEOC) Prevent air and water pollution? Environmental Protection Agency (EPA)

CE. 13 f - Money Anything that is accepted as a method of payment? Money What makes it easier to trade, borrow, save, and invest plus compare the value of goods and services? Money

CE. 13 f - Money People use the money issued by the government because people have _____ in the government. confidence Types of money issued by the government? Coins and Currency

CE. 13 f - Money Types of money used to access deposits in bank accounts? Checks and Debit Cards CE. 14 - Personal Finance & Career Opportunities Combination of a person’s education, knowledge, skill, experience, health, training, and talent? Human Capital

CE. 14 - Personal Finance & Career Opportunities If you want to develop your human capital so you can produce and earn more plus choose a satisfying career, then you should invest in your… Education What should you do during career planning? Self-Assessment

CE. 14 - Personal Finance & Career Opportunities A self-assessment should include your… Interests, Talents, and Aspirations Employers seek employees with a strong… work ethic What determines your work ethic and chances at career success? Attitudes and Behaviors

CE. 14 - Personal Finance & Career Opportunities A self-assessment should include your… Interests, Talents, and Aspirations Employers seek employees with a strong… work ethic What determines your work ethic and chances at career success? Attitudes and Behaviors

CE. 14 - Personal Finance & Career Opportunities Higher levels of _____ often lead to higher incomes. education and skills What else can influence job income? Supply and Demand

CE. 14 - Personal Finance & Career Opportunities Employers seek individuals who have _____ with technology by _____ their skills. Answer #1 – kept pace Answer #2 - updating Advances in technology create… new jobs

CE. 14 - Personal Finance & Career Opportunities Changes in _____ influence the abilities, skills, and education needed in the marketplace. technology Technology and information flows permit people to work across international… borders

CE. 14 - Personal Finance & Career Opportunities Technology and information flows create _____ for jobs, but also may create new job _____. Answer #1 - competition Answer #2 - opportunities Being fiscally responsible includes: 1. Making careful _____ decisions. spending

CE. 14 - Personal Finance & Career Opportunities 2. _____ for the future Saving and investing 3. Having _____. insurance 4. Keeping to a _____. budget

CE. 14 - Personal Finance & Career Opportunities 5. Using _____ wisely. credit 6. Understanding how _____ can protect the individual when they purchase goods and services. contracts, warranties, and guarantees