Principles of Business 8 Edition
Chapter 1 Guided Reading
Section 1-3 Economic Systems
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Questions
Read and highlight the second sentence.
Highlight the three economic questions.
Read and highlight the first sentence.
What determines what goods a country can produce?
Countries differ in the type of resources available to them, but what also makes them different?
What is the difficult question must countries face?
How has the U.S. changed in what it produces?
What type of professions are needed today that were not needed two centuries ago?
Read and highlight the first sentence.
What is true because wants and needs are unlimited?
In the U.S. we have many resources. Because of this, individuals decide what to buy. What
determines what you buy?
What is an economic system?
What is a command economy?
Highlight one example of what government can decide in a command economy?
Highlight something many Americans may have a hard time adapting to in a command
economy.
What is a market economy?
What is a marketplace?
Highlight examples of a marketplace.
What is the government’s role in a market economy?
What does it mean when consumers “vote” with their dollars?
How are businesses rewarded by consumers?
What is a traditional economy?
Who uses traditional economies?
Who consumes the products and services in a traditional economy?
Traditional economies satisfy basic needs. What are the basic needs?
Read and highlight the last sentence in paragraph 62.
What is a mixed economy?
How many countries participate in a mixed economy?
What is another name for a command economy?
What was a reality of a command economy for Russia (last sentence in paragraph)
For the countries that had success switching economies, what were they granted membership
into?
Where in China is there more freedom for economic freedom?
How is education helping China’s economy?
What kind of decisions to governments usually still control in mixed economies?
What kind of economy does the U.S. operate under?
What is another name for the U.S. economic system?
What is capitalism?
What are other names for capitalism?
What are the 4 important principles the U.S. economy is based on?
What is the right of private property?
What does the right of freedom of choice mean?
Principles of Business 8 Edition
Chapter 1 Guided Reading
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When is the only time there will be restriction of the freedom of choice?
What is the right of profit?
Besides profit, why do people invest money and operate business?
What is the right of competition?
What does competition encourage?
Answer the KEY CONCEPT questions, 1-3.
Write summary of this section in Moodle.
Section 1-4 Supply and Demand
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Questions
What is a consumer?
What do consumers decide?
What are producers?
What do producers do?
Why does a market economy’s sytem work?
What is demand?
Why do businesses depend on demand?
What is supply?
What does a demand curve show?
In the demand curve, what happens when the price decreases?
What does a supply curve show?
In the supply curve, what happens when prices rise?
Why do prices change at different times?
If many people want a particular product, what happens to the price?
If there is a big price difference between comparable products, what will consumers do?
If people are loyal to a product, what are they willing to do to not switch brands?
When supply is high, what happens to price?
When there are many suppliers or competitors, what happens to price?
What happens to price when there is not much competition?
If supply of a product is disrupted, what happens to price?
What will businesses sometimes do to keep prices high?
What is market price?
Where does the market price get set on the graph?
1-4 Assessment: Answer questions 1-3
Write summary of this section in Moodle.