Name
Date
RETEACHING ACTIVITY
SECTION
1
Advantages of the Free
Enterprise System
A. Reviewing Economic Vocabulary
Match the definition with the term it best defines. Write the letter of your answer in the
blank next to the definition.
a. free contract
b. free enterprise system
c. legal equality
d. open opportunity
e. profit motive
1. the ability of everyone to enter and compete in any marketplace of his or her
own choosing
2. the situation in which everyone is able to decide for himself or herself which legal
agreements related to economics that they will enter into
3. the desire of people to improve material well being by engaging in economic
activities that benefit them
4. the situation in which everyone has the same economic rights under the law
CHAPTER 3
B. Identifying and Evaluating Legal Rights Under Our
Economic System
6. Identify the three legal rights that are central to our economic system and rank them
from most important to least important.
7. Explain your ranking.
8. What are some other factors that you think are important to allow people to succeed in
our economic system? Consider legal, political, and social factors. Of the factors you
listed, which do you think is most important and why?
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Reteaching Activity
Unit 1 Resource Book
Economics: Concepts and Choices
Chapter 3: The American Free Enterprise System
Copyright by McDougal Littell, a division of Houghton Mifflin Company
5. capitalism
Name
SECTION
2
Date
RETEACHING ACTIVITY
How Does Free Enterprise
Allocate Resources?
A. Summarizing Economic Roles
Complete the chart below by summarizing how consumers, producers, and government each
help allocate resources in our economic system.
Allocating Resources in the Free Enterprise System
Consumer’s Role
Producer’s Role
Government’s Role
B. Supporting Generalizations About our Economic System
Below are some general statements about our economic system. Read each statement. Then
supply facts or examples to support each generalization.
Copyright by McDougal Littell, a division of Houghton Mifflin Company
CHAPTER 3
1. Consumers vote with their wallets.
2. The economy of the United States is a mixed economy.
3. All levels of government participate in the economy.
4. Government is a major consumer in the U.S. economy.
144
Reteaching Activity
Unit 1 Resource Book
Economics: Concepts and Choices
Chapter 3: The American Free Enterprise System
Name
SECTION
3
Date
RETEACHING ACTIVITY
Government and Free
Enterprise
A. Reviewing Economic Vocabulary
Select the term that best completes each sentence. Write the term in the blank.
free rider
infrastructure
market failure
negative externality
positive externality
public good
public transfer payment
safety net
payment
subsidy transfer
1. The set of government programs designed to protect people from economic hardship are
referred to as a
.
2. Someone who receives benefit from a good or service although he or she has chosen not
to pay for the good or service is called a
.
3. The goods and services that are necessary for the smooth functioning of society are
4. A
.
occurs when people who are not part of a marketplace
CHAPTER 3
interaction either benef it from the interaction or pay part of the costs.
5. If you receive money but do not provide a good or service in exchange, you have
received a
.
6. A beneficial side effect of a transaction that affects someone other than the producer or
a buyer is called a
.
7. Any good or service provided by the government and consumed by everyone, as a
group, is called a
.
8. A payment made by the government to a recipient who doesn’t provide any good or
service in return is called a
.
9. A payment made by the government for part of the cost of an economic activity that will
benefit the public as a whole is called a
.
10. A detrimental side effect of a transaction that affects someone other than the producer or
a buyer is called a
154
Reteaching Activity
Unit 1 Resource Book
.
Economics: Concepts and Choices
Chapter 3: The American Free Enterprise System
Copyright by McDougal Littell, a division of Houghton Mifflin Company
the nation’s