Unit 6 Quiz Part 1

Question 1

What is an economic system?

Answer 1

The way society organizes the production, distribution, and consumption of goods and services

Question 2

What is scarcity?

Answer 2

The idea that land and materials limit what people need

Question 3

What factor create scarcity?

Answer 3

Land, labor, capital

Question 4

Explain how land affects scarcity

Answer 4

Land consists of all the materials found in the natural environment needed to produce goods and services, such as renewable and non-renewable resources

Question 5

Explain how labor affects scarcity

Answer 5

Labour consists of the physical and mental effort needed to produce good and services

Question 6

Explain how capital affects scarcity

Answer 6

Consists of the money people own or borrow, used to purchase equipment, tools, and other resources to produce goods and services

Question 7

What are the three types of economies?

Answer 7

Planned economy, Mixed economy, Market Economy

Question 8

Which type of economy has more government involvement?

Answer 8

Planned economy

Question 9

Which type of economy has less government involvement?

Answer 9

Market Economy

Question 10

What does shift left mean?

Answer 10

More government involvement

Question 11

What does shift right mean?

Answer 11

Less government involvement

Question 12

Describe a planned economy

Answer 12

• Government makes all decisions about how to solve scarcity
• Government owns and manages the resources to produce things
• Plans what will be produced and how to use limited resources

Question 13

Characteristics of a planned economy

Answer 13

• Resources are publically owned
• Government makes decisions on how to use resources
• Individual consumers have little influence on economics

Question 14

Describe a mixed economy

Answer 14

• Combines private ownership and government ownership
• Government owns some and private companies own some
• Level of government fluctuates depending on what party is in power

Question 15

Characteristics of a mixed economy

Answer 15

• Some resources are publicly owned and some are privately owned.
• Individuals and government both make decisions about what to produce.
• Individual consumers an government influence economic decision making.

Question 16

Describe a market economy

Answer 16

• The choices of individuals solve scarcity
• Private businesses own and manage resources
• The government does not get involved

Question 17

Characteristics of a market economy

Answer 17

• Resources are privately owned
• Individuals make decisions on how to use resources
• Individual consumers drive economic decision

Question 18

How do individual consumers drive economic decision?

Answer 18

By choosing what to buy

Question 19

What is public good?

Answer 19

What’s best for society as a whole

Question 20

In what way does Canada acheive public good?

Answer 20

Co-operation. Must consider each other and achieve what’s best for society. Values equity

Question 21

How does the USA achieve public good?

Answer 21

Individualism. What’s best for each person individually adds up to what’s best for society. Values individual creativity and independence

Question 22

What’s Canadas founding principle?

Answer 22

“peace, order and good government.”

Question 23

What’s USAs founding principle?

Answer 23

“life, liberty, and the pursuit of happiness”