Unit Three Questions (ELP p. 26 –33)

1. What are the four basic factors of production? Define each of them.

2. What are the advantages and disadvantages to specialization and division of labor?

3. What are capital goods and human capital?

4. Which industries rely more on human capital than others? What is a service industry?

Unit Four Questions (ELP p. 38 – 45)

1. Define traditional, command, market, and mixed economies. How is the US a mixed economy?

2. How does the U.S. economic system encourage private ownership of property and individual initiative?

3. How do supply, demand, and competition affect prices and the availability of goods and services?

4. How do factors such as demand, product quality, management, and training affect the profit of a business?

5. What are the differences between a sole proprietorship, partnership, corporation and the stock market?

6. How does international trade affect the American economy?

7. What are the three requirements for money?

8. What is the role of the Federal Reserve in regulating the economy?

9. What are different economic goals that people may have?

Unit Five Questions (ELP 50 – 57)

1. Define:

market economy (look at the glossary p. 600)

capitalism

free enterprise

interest

stock

bonds

credit

2. Define business cycle and recession.

3. How do economists measure how the economy is doing?

4. How does the government encourage economic growth?

5. How do environmental factors impact our economy?

6. Define Gross Domestic Product and how is it used as an indicator of the state of the economy?

7. What is the index of leading indicators?