NAME
CLASS
Section
DATE
Guided Reading and Review
,:.1
Answering the Three Economic Ouestions 'ii
A. As You Read
As you read Section 1, supplv the missing information about economic
{!r
provided.
t
1. Three economic questions ansu'ered:
L
s-u-stems
in the
spaces
I.|
e.
(a)
t
(b)
t)
(c)
2. Economic concept necessitating choices and priorities in anr.
societ,v:
3. Economic question ansrvered bl. basic social values and goals:
4. Five basic economic goals guiding societv's choice of svstems:
(a)
(b)
(c)
(d)
5. Four main kinds of economres:
(a)
(c)
(b)
(d)
B. Reviewing Key Terms
Complete each sentence bv r,vriting rhe correct term in the blank.
c
6
I
6. An economic system
that relies on habit, custom, or ritual to decide questions of produc-
tion and consumption of goods and sen'rces
o
rs a
.9
q
o
7, An encyclopedia
o-
_.
entry illustrating hon'a hunter-gatherer group collects and shares food
resources is describing rhar socien-'s
o
8.
Vhen voiuntarv exchanges in the markets determine decisions on production and consumption. the societr's economic svstem is a
9. $fhen people earn income
recelve
10. An economic system
_
for supplving land, labor, capital, or entrepreneurship, thel'
in rvhich the central governmenr makes all decisions on production
and consumption of goods and services is
a
11. People who receive disaster relief from the gor,ernment afrer a flood are benefiting from an
economic sYstem that Provides a
Chapter 2 Section 1: Guided
RM
NAME
CLASS
Section
DATE
Guided Reading and Review
The Free Market
(\
A. As You Read
t
As you read Section 2, list the role or roles played in a free market economy by each factor in the
diagram below.
l&
l*
{
{
Roles and Functions in a Free Market Economy
f
1. lndividuals
o
and
Businesses
4. Self-interest
B. Reviewing Key Terms
Match the definitions in Column I with the terms in Column IL 'Write the letter of the correct
answer in the blank orovided. You will not use all of the terms.
o
c
G
Column
Golumn ll
I
I
6. market in which households purchase the goods and services that
.9
c
firms produce
o
o-
b. competition
7. an expectation that encourages people to behave in a certain way
8. power of consumers to decide what gets produced
c. product market
d. market
9. market in which firms purchase the factors of production from
e. incentive
households
_
_
a. profit
f.
10. financial gain made in a transaction
11. concentration of productive efforts of individuals and firms on
limited number of activities
a
12. an arrangement that allows for exchange among buyers and seliers
self-interest
g. specialization
h. factor market
i,
consumer sovereigntv
Chapter 2 Section 2: Guided Reading and Review
15)
NAME
CLASS
Section 3: Guided Reading and
DATE
Review
Gentrally Planned Economies
,"
€ry,
(\
A, As You Read
As you read section 3, supply the missing informarion in the chart below.
t
a
central Economic Planning in the Former soviet union
1. Main
l-
a.
goal:
r(
t
tJ
Role of central government:
(a)
(b)
3.
Effects on agriculture:
(a\ Positiue
(b) I,tregatiue
4. Effects on industry:
(a\ Positiue
(b) Negatiue
5.
Effects on consumers:
(a) Positiue
(b) Negatiue
B. Reviewing Key Terms
Define the following rerms.
c
6. sociaiism
a
T
o
E
7.
communism
E
0_
(9
8. authoritarian
9. collective
10. heavy industry
Chapter 2 Section 3: Guided Reading and
Review
17
NAME
DATE
Section 4: Guided Reading and Review
Modern Economies
i,il
':{
A. As You Read
As you read Section 4,
each question.
fill in tlvo supporting
facts or details under each main idea by answering
Main Idea: Government intervenes rn market economies because some needs and wants of modern societies are hard to answer in the marketplace or mav be answered more fairly for all members of society with government involvement.
1. What needs and wants
are hard to answer?
2. What needs and wants are answered
more fairly rvith government involvement?
Main ldea: Government intervention dominates in some mixed economies.
3. How does government intervene
in North Korea's economy?
4. How is government intervention
less extreme
in China's economy?
Main Idea: The market system dominates in some mixed economies.
5.
\X/hat country is one of the world's freest markets?
6. Whv is it one of the freest?
B. Reviewing Key Terms
o
6
T
o
E
c
o
Answer each of the following questions.
7. How
does free enterprise
differ from laissez faire?
0_
(9
8. Why is China said to have a transition economy?
9. What does it mean to Driuatize
an industrv?
10. \7hy do the world's national economies fall inside
a continuum?
Chapter 2 Section 4: Guided Reading and
Review 19)