Uni+·~
+CHAPTER 3 ACTIVITY+
ECONOMICS
Write the Answer Write complete sentences to answer each question.
1. According to Adam Smith, how does self-interest control market economies?
2. What four things make the market system work? - - - - - - - - - - -
3. Why do producers work hard to get your business?
4. How does freedom of exchange work?
5. What is free enterprise? - - - - - - - - - - - - - - - - - - - - -
Fact or Opinion Write F next to each fact below. Write 0 next to each opinion. If
the sentence gives both a fact and an opinion, write FO on the blank and circle the
part of the sentence that is an opinion. You should find three sentences that give
op1ruons.
1. A person's house, car, and clothes are private property.
2. People can buy as much private property as they can afford, but
they should save some of their money for the future.
3. When someone offers you something on sale, you should buy it.
4. Consumers are free to decide whether or not to pay the price for a
good or service.
5. The desire for profit can make producers compete.
6. Producers always charge too much
• CHAPTER 3 ACTIVITY+
ECONOMICS
Understanding Classified Advertising An important part of a market system is
private property. People can buy as much private property as they can afford.
People can also choose to sell private property. One way people buy and sell private
property is through classified ads that they place in the newspaper. Look at the
following classified ads. Then write the answer to each question.
BIKES FOR SALE
PUPPIES FOR SALE
1 USED BICYCLES in ready-to-ride
condition. $35 each or best offer.
Call 555-6234.
5
BOXER PUPPIES Pretty, cuddly, soft.
Brown with white spots. Shots included.
Call 555-6543.
2 I've grown, but my bicycle hasn't. Must
sell! CHEAP! $60. Call 555-1237.
6
BOXER PUPS Excellent hunters and
show dogs. One can be yours for $250.
Call 555-8320.
7
Female Collie. 2 years old. Moving to
apartment. No pets allowed. Has all
shots. Free to a good home. Dog cage
Call 555-1820.
8
Mixed Breed puppies. Black, white, and
brown. Good temper, healthy, playful.
Available now. $25. Call 555-0032.
3 Need good transportation? This is the
bicycle for you! The bike has 12 speeds,
hand brakes, a large basket, horn, and
light. Tires are like new. New $125.
Will sell for $100. Call 555-0554.
4
FREE FREE FREE FREE FREE
Buy my bike and get a free tune-up at
the bike shop. 10-speed mountain bike.
Needs repairs. $75. Call 555-9900.
1. In which of the bicycle advertisements is the seller willing to discuss the
price? How do you know?
2. Which of the bicycle advertisements gives you the most information about
the bicycle being sold?
3. In Advertisement 4, the owner lets you know that the bike needs repairs. How
does this seller compete with the people selling bikes in good condition?
4. If you wanted to get one of the puppies, which classified ad would you be
most likely to use? Why? - - - - - - - - - - - - - - - - - - - -
5. On the back of this paper or on a separate sheet of paper, make a classified
or
CHAPTER 4 ACTIVITY+
ECONOMICS
Write the Questions Below are the answers for some questions from this chapter.
Read each answer. Then write on the blank line a possible question to go with each
answer. Use the question words to help you.
This is created when people buy a good or service.
Consumers tell them what to make by making purchases in the market.
This law says that as the price of a good or service falls, sellers will offer
less, and buyers will demand more.
4. How
These are avoided by using the market system to find the market clearing
price.
This diagram shows how resources, products, and money flow in a free
enterprise economy.
Write About It Write a paragraph that explains how supply and demand affect
Economics: Concepts and Applications ©1996 Steck-Vaughn
~·CHAPTER
4 ACTIVITY+!!
ECONOMICS
Reading a Bar Graph A bar graph uses bars of different lengths to show facts. The
bar graph below shows the average hourly income of selected workers. Study the
graph. Then write the answer to each question.
Average Hourly Income of Some Workers, 1993
Computer Programmer
Grocery Clerk
Logger
Fast Food Worker
Engineer
0
2
3
4
5
6
7
8
9
10 11
12 13 14 15
16 17
Dollars Per Hour
1. What workers are shown on the graph?
2. Which worker makes the least amount of money per hour?
3. Why do you think an engineer makes more money per hour than a grocery
4. About how much more money per hour can a computer programmer expect
to make than a fast food worker? - - - - - - - - - - - - - - - - 5. Are these people part of the resource market or the product market?
6. Where might businesses get the money to pay for these workers' incomes?
Economics: Concepts and Applications ©1996 Steck-Vaughn Company.
'+CHAPTER 5 ACTIVITY+
ECONOMICS
Write the Answer Write complete sentences to answer each question.
1. What did Karl Marx think factory workers should do to make their lives
2. Who owns the industries in a socialist economy?
3. Why are taxes high in Sweden?
4. How does the limited market system work in communist China?
Distinguishing Relevant Information Imagine that you have been asked to
explain some of the differences between socialism and communism. Read each
sentence below. Decide which sentences are relevant to what you will say. Put a
check in front of the relevant sentences. There are three relevant sentences.
1. Communism is a type of command economy, and socialism is a
mixed economy.
2. The government owns all of the businesses in a communist
economy, and the government owns some of the businesses in a
socialist economy.
3. Capitalism and socialism are both mixed economies.
4. Both socialism and communism came from the ideas of Karl Marx.
5. People in a socialist economy can work at
job they choose,
but people in a communist economy must work where the
government tells them to work.
Company.
+CHAPTER 5 ACTIVITY+•
0
ECONOMICS
Graphic Organizer: Concept Web The Concept Web below shows some of the
and benefits the socialist government in Sweden provides. A benefit is
something that helps a person. Study the web. Then write the answer to
question.
Education and child care are
free in Sweden.
People in Sweden
pay high taxes to the
government for many
services and benefits.
The government makes sure
that all employed people get a
paid four-week vacation.
1. How does the government in Sweden help children?
2. What do couples get from the government when they get married?
3. Do people that are ill have to pay for medical care in Sweden?
4. What do all employed people in Sweden g e t ? - - - - - - - - - - - 5. Do you think that people in
and
Economics: Concepts and Applications ©1996
Why or
should
not?
to pay high taxes for these
UNIT 2 REVIEW+
ECONOMICS
Write the Answer Write one or more sentences to answer each question.
1. Explain what Adam Smith said about how people make economic decisions.
2. Name the four key features of a market system.
3. What creates demand for a product?
4. Explain the law of demand.
5. Explain the law of supply. - - - - - - - - - - - - - - - - - -
6. How do the laws of supply and demand work together to produce a market
clearing price? - - - - - - - - - - - - - - - - - - - - - - - - -
7. Describe how the circular flow model of the economy works.
8. From whom did the ideas of socialism and communism come?
9. How are socialism and communism different? - - - - - - - - - - - -
Economics: Concepts and Applications ©1996
+UNIT 2 TEST+
ECONOMICS
Finish the Sentence Draw a
sentence.
around the word or words that finish
1. When we act in our own self-interest, we _ __
do what is best
for us
do what best
for others
do what others expect us
to do
2. Adam Smith said that market economies are controlled by _ __
tradition
the government
an "invisible hand"
3. Producers work hard to get people's business because they hope to make
a _ __
competition
freedom of exchange
profit
4. The economic system that allows the people to make most decisions about
the three basic economic questions is called _ __
free enterprise
socialism
communism
5. When you buy a product, you create _ __
competition
a market
demand
6. The law of supply and demand says that as the price of a good or service
falls, sellers will offer less, and buyers will demand _ __
more
less
the same amount
7. If you are a worker, you sell your labor in the _ _
product market
resource market
flow of the economy
8. The stage of socialism in which government is supposed to disappear is
called _ __
capitalism
free enterprise
communism
9. Under socialism, how the country's resources will be used is decided
by _ _
the
the
10.
been failing in
communism