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2. #1 What is the definition of goods? True or False. Food, a television set, gasoline, cement are called Goods or products. .

3. #1 True - Goods are things you can see and touch

4. #2 2. True/False: Is the definition of natural resources the raw materials supplied by nature?.

5. #2 True All materials that come from the earth, the water, or the air are natural resources. .

6. #3 What is the definition of human resources.?

7. #3 Did you say human resources are the people who work to produce goods and services you are right

8. #4 What is capital resources?

9. #4 The tools, equipment and buildings that are used to produce goods and services are called capital resources.

10. #5 What does economic decision making mean?

11. #5 Economic decision making is the process of choosing which wants, among several wants being considered will be satisfied.

12. #6 Do businesses and governments deal with scarcity. Give an example for both

13. #6 Examples from page 10 – A growing business might want to enlarge its plant and parking lot, but because the land it owns is limited and locating elsewhere would cost more than it can afford, it cannot do both. All levels of government face the problem of supplying the almost unlimited wants of their citizens with limited resources. Example would be your town may wish to give a large wage increase to police and firefighters but because taxes may not provide enough money the increase might have to be smaller in order to provide other services, such as a new school building or additional employee to collect the garbage

14. #7 What is an economic system?

15. #7 A nation’s plan for answering the key economic questions is an economic system

16. #8 What is a market economy?

17. #8 A Market economies are generally found in countries that have democratic forms of government. Individuals buy and sell goods to people in a market place.

18. #9 What is capitalism?

19. #9 Capitalism means that economic resources are usually privately owned by the individuals rather than by the government.

20. #10 What is private enterprise?

21. #10 Private enterprise is the right of the individual to choose whether to own a business, what business to enter, and what to produce with only limited government direction.

22. #11 What is private property?

23. #11 Private property means you can own, use or dispose of things of value. You may dispose of things you own by selling them .

24. #12 Explain the word profit.

25. #12 Profit is the money left from sales after subtracting all the costs of operating the business.

26. #13 Demand is the word I would like you to know.

27. #13 Demand means the quantity of a product or service that consumers are willing and able to buy at a particular price.

28. #14 What is the definition of supply?

29. #14 Supply mean the quantity of a product or service that businesses are willing and able to provide at a particular price.

30. #15 How is your “standard of living” Define

31. #15 The term standard of living refers to the way you live as measured by the kinds and quality of goods and services you can afford.

32. #16 What is the correct definition of Public Goods?

33. #16 Public goods are something needed by a community and provided by its government.

34. #17 A Video Rental center purchased 24 dozen video DVD’s of a new movie, at a cost of $20 per DVD, to sell at Christmas. How many individual DVD’s did they buy?

35. #17 24x12= How many DVD’s did they purchase. Amount 288

36. #18 The video store brought those 288 DVD’s before Christmas. If demand dropped after the holidays, would the shop be more likely to increase or decrease the price to sell the DVD’s?

37. #18 Decrease the price because the demand is lower and remember there are always great sales AFTER the holidays.

38. #19 What is meant by GDP?

39. #19 The gross domestic product (GDP) is the total dollar value of all final goods and services produced in our country during one year. It measures how the economy is doing.

40. #20 Please tell me what GDP per capita means?

41. #20 Another way to measure economic growth is GDP per capita or output per person. GDP per capita is calculated by dividing GDP by the total population.

42. #21 We are in a recession now. What does that mean?

43. #21 Recession is a period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year.

44. #22 Hopefully, we will not go into a depression as we did in the 1930’s. What is a depression?

45. #22 Depression is a phase market by a prolonged period of high unemployment, weak sales of goods, and services, and business failures

46. #23 Recently, we have seen some forms of deflation. What is deflation?

47. #23 Deflation means a decrease in the general level of prices. It usually occurs in periods of recession and depression.

48. #24 Please explain a business cycle?

49. #24 All nations experience good times and bad times. Over a period of time bad conditions disappear and good conditions return. This movement of the economy from one condition to another and back again is called a business cycle

50. #25 Bonus question: Suppose that many auto and steel plants close throughout a country and that thousands of workers lose their jobs in a relatively short time period. If the county has been enjoying prosperous times, it may now be headed into what phase of the business cycle? Describe other conditions that might begin to occur.