Standard CE.11a – Economic Concepts
1. _____ is the inability to satisfy all wants at the same time. All resources and goods are limited. This
requires that choices be made.
2. _____is the amount of money exchanged for a good or service. Interaction of supply and demand
determines price. Price determines who acquires goods and services.
3. _____is selection of an item or action from a set of possible alternatives. Individuals must choose or
make decisions about desired goods and services because these goods and services are limited.
4. _____ interaction determines price.
5. _____are factors of production that are used in the production of goods and services. Types of resources
are natural, human, capital, and entrepreneurship.
6. _____is the using of goods and services. Consumer preferences and price determine what is purchased
and consumed.
7. _____are things that incite or motivate. Incentives are used to change economic behavior.
8. _____is what is given up when a choice is made—i.e., the highest valued alternative is forgone.
Individuals must consider the value of what is given up when making a choice.
9. _____is the amount of a good or service that consumers are willing and able to buy at a certain price.
10. _____is the combining of human, natural, capital, and entrepreneurship resources to make goods or
provide services. Resources available and consumer preferences determine what is produced.
11. _____is the amount of a good or service that producers are willing and able to sell at a certain price.
One choice won’t be used!
A. Choice
B. Consumption
C. Goods and Services
D. Incentives
E. Opportunity Cost
F. Supply
G. Price
H. Production
I. Resources
J. Demand
K. Scarcity
L. Supply and Demand
Decisions! Decisions!
People make choices about how to use
limited ___________________, decide
the _________________________ of
resources, and structure markets for
the distribution of _____________ and
____________________.
Standard CE 11.b – Major Economic Systems
Every country must develop an economic system to determine how to use its limited productive resources. The key
factor in determining the type of economy a country has is the extent of government involvement.
The three basic questions of economics
1. What will be ____________________________?
2. Who will _______________________ it?
3. For whom will it be _________________________?
Each type of economy answers the three basic questions
____________________________.
Characteristics of major economic systems
1. No country relies exclusively on markets _____________________________________________________________
______________________________________________________________________________________________.
Traditional economy
1. Economic decisions are based on ___________________________________________________________________.
2. People often perform the same type of work as their ___________________________________________________,
regardless of ____________________________________________________________________________.
Free market economy
1. ______________________________________________________________
2. ______________________________________________________________
3. ______________________________________________________________
4. ______________________________________________________________
5. ______________________________________________________________
6. _______________________________________________________________________________________________
Command economy
1. ________________________________ (usually by government) of __________________/_____________________
2. ________________________________________________________
3. __________________________________________________________________
Mixed economy
1. Individuals and businesses are owners and _____________________________ for the _______________________.
2. Government is ______________________ and decision maker for the ________________________________.
3. Government’s role is _______________ than in a free market economy and ________ than in a command economy.
4. Most economies today, including the ___________________________________, are _______________ economies.
Standard CE.11c – Characteristics of the United States Economy
The United States economy is primarily a free market economy; but
because there is some government involvement it is characterized as a
___________________________________________. Government
intervenes in a market economy when the perceived _________________________
of a government policy outweigh the anticipated _____________________.
Characteristics of the United States economy
1. Markets are generally allowed to operate ___________________________________________________
__________________________________________. Prices are determined by ____________________
and ________________________ as buyers and sellers interact in the marketplace.
2. Private property: ________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
3. Profit: _________________________________________________________________________________
_______________________________________________________________________________________
4. Competition: ___________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________
5. Consumer sovereignty: __________________________________________________________________
_____________________________________________________________________________________
Government involvement in the economy is _______________________. Most decisions regarding the
production of goods and services are made in the _____________________ sector.
Standard CE.12a – Business Organizations
Basic types of business ownership
1. _______________________: A form of business organization with ______________ owner who takes all
the ____________ and _________________________________.
2. _______________________: A form of business organization with ______________ or more owners
who ______________ the risks and the profits.
3. _______________________: A form of business organization that is authorized by law to act as a legal
entity regardless of the ___________________________________________. Owners share the
___________________. Owner liability is ________________ to the amount of their investment.
Entrepreneur
1. A person who takes a risk to produce and sell goods and services in search of _____________________
2. May establish a business according to any of the ____________________________________________
__________________________________________
Standard CE.12b – Economic Flow
Resources, goods and services, and money flow continuously among households, businesses, and markets in
the United States economy.
Economic flow (circular flow)
1. Individual and business saving and investment provide __________________________________that can
be borrowed for business ________________________ and increased ___________________________.
2. Individuals (households) ______________ the resources used in production, ________________ the
resources, and ______________________________ to purchase products.
3. Businesses (producers) _____________ resources; make __________________________ that are sold to
individuals, other businesses, and the government; and use the ___________________ to buy more
resources.
4.
Governments use tax revenue from individuals and businesses to provide ________________________
_______________________________.
Economic Flow Chart
1. In our economy, individuals (households) do all except 
A reinvest profits by buying more resources.
B sell their resources (labor).
C use their income to purchase goods and services.
D limit their purchases according to government
recommendations.
2. Businesses most frequently participate in the economic
circular flow of resources by 
A buying resources and making products to sell to
consumers.
B providing public goods and services by use of tax dollars.
C providing investment capital to expand.
D consuming products.
3. When the government uses tax dollars to purchase products and/or services from the public, they are participating
A
B
C
D
in what economists consider the 
spread of money.
economic flow.
purchasing of products.
stock purchases.
4. Reinvesting tax dollars into public goods and services shows one aspect of the government’s involvement in the 
A supply and demand curve.
B market equilibrium.
C economic flow.
D consumer product safety.
Standard CE.12c – Private Financial Institutions
Private financial institutions act as intermediaries between ________________ and
____________________ that include households and business investors.
Private financial institutions
1. Include ______________________________________________________________________________
2. Receive ______________________________________________________________________________
3. Encourage ____________________________________________________________________________
Standard CE.12d – Global Economy
Virginia and the United States pursue international trade in order to increase ____________________.
Terms to know
____________________________: Worldwide markets in which the buying and selling of goods and services
by all nations takes place
Reasons that states and nations trade
1. To obtain goods and services they _________________________________________________________
_________________________________________________________________
2. To buy goods and services at a ____________________________________________________________
3. To sell goods and services to _______________________________________
4. To create _________________
___________________ and the __________________________________ specialize in the production of
certain goods and services, which promotes efficiency and growth.
Impact of technological innovations
1. Innovations in technology (e.g., the Internet) contribute to the global flow of ______________________
__________________________________ and ___________________.
2. The use of such technology also __________________________________________________________.
Standard CE.13a – Marketplace Competition
The government ______________________ and ___________________________ marketplace competition.
Ways the government promotes marketplace competition
1. Enforcing _______________________________________ to discourage the development of monopolies
2. Engaging in _____________________________________
3. Supporting ______________________________________
Government agencies that regulate business
1. FCC (________________________________________________________________) radio, TV, etc.
2. EPA (________________________________________________________________) Clean Air Act
3. FTC (________________________________________________________________) Trade with China
4. These agencies oversee the way individuals and companies do __________________________________.
Standard CE.13b – Public Goods and Services
Government provides certain goods and services that individuals and businesses ______________________
________________ cannot provide efficiently.
Characteristics of most goods and services provided by government
1. Provide benefits to many ___________________________________
2. Would not likely be available if ____________________________________________________________
3. Include such things as ___________________________________________________________________
________________________________________________________________________________________
Ways governments pay for public goods and services
1. Through __________________________________
2. Through borrowed _________________________
3. Through fees (e.g., ________________________________________)
Standard CE.13c – Impact of Taxation
1. The government _____________, __________________, and ____________ to influence economic
activity.
2. Government tax increases ____________________ the funds available for individual and business
spending; tax decreases __________________________ funds for individual and business spending.
3. Increased government borrowing _________________________ available for borrowing by individuals
and businesses; decreased government borrowing ____________________________ available for
borrowing by individuals and businesses.
4. Increased government spending _________________________________, which may increase
employment and production; decreased government spending
____________________________________, which may result in a slowing of the economy.
5. Increased government spending may result in________________________ taxes; decreased
government spending may result in ___________________ taxes.
6. The _________________________________________ to the Constitution of the United States of
America authorizes Congress to tax personal and business incomes.
Standard CE.13d – Federal Reserve System
The Federal Reserve System is our __________________________________________________________.
As the central bank of the United States, the Federal Reserve System
1. Has the duty to maintain the value of the _____________________________________________ (dollar)
2. Regulates banks to ensure the soundness of the _______________________________________ and the
_____________________________________
3. Manages the amount of money in the economy to try to keep ___________________________ low and
__________________
4. Acts as the _______________________________________________________________
Standard CE. 13e – Consumer and Property Rights
1. The United States government _____________________________________________ and creates
_____________________________ to protect consumer rights and property rights.
2. Individuals have the right of private ownership, which is protected
by ____________________________ ________________________________
that are ________________________________________________________.
3. Government agencies establish guidelines that protect ________________________________________
and _________________________.
4. Consumers may __________________________________________________________ of consumer
rights.
Standard CE.13f – Coins and Currency

Money is defined as anything that is generally accepted as a _________________________________
___________________________________.

When the United States government issues coins and currency, people accept it in exchange for goods
and services because they have ___________________________________________________________.

Government ___________________________________ to facilitate this exchange.
The three types of money generally used in the United States are
1. __________________________
2. ____________________________________________
(currency – paper money)
3. ______________________________________________ that can be
accessed by checks and debit cards.
Time To Review…
1. The radio disc jockey on Z104 aired a portion of his/her broadcast that was inappropriate and against the law.
A
B
C
D
Which governmental regulatory agency will most likely levy a fine and/or penalty against the radio station?
Federal Trade Commission
Federal Communications Commission
Consumer Protection Safety Commission
Federal Deposit Insurance Corporation
2. If the state of Virginia decided to buy and sell goods with a foreign company, which governmental regulatory
A
B
C
D
agency would be required to approve the venture?
Environmental Protection Agency
Interstate Commerce Commission
Securities and Exchange Commission
Federal Trade Commission
3.
A
B
C
D
What government regulatory agency monitors television programming?
Federal Communication Commission (FCC)
Environmental Protection Agency (EPA)
Federal Trade Commission (FTC)
North Atlantic Free Trade Organization (NAFTA)
4.
A
B
C
D
What government regulatory agency regulates the disposal of hazardous wastes from hospitals?
Federal Communication Commission (FCC)
Environmental Protection Agency (EPA)
Federal Trade Commission (FTC)
North Atlantic Free Trade Organization (NAFTA)
Standard CE.14 – Personal Finance and Career Opportunities

An awareness of personal talents, interests, and aspirations is needed to select a career.

Attitudes and behaviors that support a strong work ethic enhance career success.

There is a correlation among skills, education, and income.

Changes in technology influence the abilities, skills, and education needed in the workforce.
1. Career planning starts with __________________________________________.
2. Employers seek employees who demonstrate the attitudes and behaviors of a _____________________
_______________________________.
3. Higher skill and/or education levels generally lead to _____________________________________.
4. Supply and demand also influence ______________________________________.
5. Employers seek individuals who have kept pace with __________________________________________
by updating their _______________________.
6. Technological advancements ________________________________________ in the workplace.
7. Technology and information flows permit people to ___________________________________________
_______________________________. This creates ___________________________ from foreign
workers for United States jobs but also may create opportunities for United States workers to work for
companies based in other countries.
8. Being fiscally responsible includes making careful _______________________________________, saving
and _______________________________ for the future, having ___________________________,
keeping to a ____________________, using ___________________ wisely, as well as understanding
how contracts, warranties, and guarantees can _________________________ the individual.
According to the cartoon,
supply and demand can influence –
A individual skills.
B production costs.
C job income.
D competition.