☀️ A1 - CAPITALISM: GUIDED NOTES (MUST-DO)

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15 questions

CAPITALISM - GUIDED NOTES

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CAPITALISM - PRACTICE

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The modern U.S. economy is based on _______.

Capitalism is an _______system based on the _______and _______of businesses where the _______of business owners is to _______.

List six key characteristics of capitalism.

The U.S. economy is based on a system called _______.

True

False

In capitalism, the ultimate goal of business owners is to _______. 

Motivation to make a profit

Government ownership of businesses

Prices determined by government agencies

Prices determined by supply and demand

Motivation to maintain economic equality among citizens

Private ownership and control of business

Competition between businesses

Voluntary exchange of goods and services

Private ownership of property

Tax placed on a good or service by the government

Amount of a money a company has to spend in order to produce a good or service

Social or environmental effects of an economic transaction that are not included in the overall price

Amount of money a person has to pay to receive a good or service

True

False

True

False

True

False

True

False

Capitalism is a system where the government owns and controls all of the businesses in the country.

True

False

Check off all of the following that are characteristics of capitalist economies. 

Motivation to make a profit

Government ownership of businesses

Prices determined by government agencies

Prices determined by supply and demand

Motivation to maintain economic equality among citizens

Private ownership and control of business

Competition between businesses

Voluntary exchange of goods and services

Private ownership of property

Categorize the following based on whether they are commonly considered ADVANTAGES of capitalism or DISADVANTAGES of capitalism. 

Requires increasing levels of consumption and risk-taking

Goods and services are more widely available

Goods and services can be produces at a lower cost

Standard of living often increases

Rewards for hard work and innovation

Inequality between different social classes

External costs like pollution, waste, and species extinction are often ignored

Goods and services can be produced more efficiently

ADVANTAGES

DISADVANTAGES

Which of the following is the best explanation of the term "external costs"?

Tax placed on a good or service by the government

Amount of a money a company has to spend in order to produce a good or service

Social or environmental effects of an economic transaction that are not included in the overall price

Amount of money a person has to pay to receive a good or service

It usually cheaper and more efficient to produce goods in capitalist societies than it is in other types of economies.

True

False

The government sets the prices of goods in capitalist economies. 

True

False

The standard of living has most often increased for people who live in capitalist economies. 

True

False

One major problem with capitalism is that businesses are not allowed to compete with each other in terms of prices and quality of goods and services.

True

False