1. What occurs when people who are not part of a marketplace interaction benefit from it or
pay part of its costs? p. 84 market failure
2. Who\what sometimes provides the good or services when a market failure occurs?
3. What are products provi
desire to have some good or service and the ability to pay for it
2. law of demand
when prices go up demand decreases and visversa
3. demand schedule
listing of how much of an item an individual is willing to purchase at each price
4. market dem
1. Any point on the curve is efficiency and any point under the point is underutilization.
2. resources are fixed,all resources are fully employed, only two things can be produced,
technology is fixed
3. need new resources, machines, factories, must retra
Chapter 3 vocabulary words-economics
1. free enterprise system-p. 70
2. open opportunity-p.73
Ability of every one to take part in market by choice
3. legal equality-p.73
every one has the same economic rights
4. free contract-p.73
What are the main goals of the U.S. Constitution?
Form a more perfect union
Ensure domestic tranquility
Provide for the common defense
Promote the general welfare
Secure the blessings of liberty
Name the six basic principles of gov
Dictatorship: one person is in power usually by force
Oligarchy: a small elite group is in power
Democracy: majority rules
Republic: the law is the ruler and the people are protected from the government by law
Anarchy: no form of government. Riots and mob
economic system- p. 38
way society uses its scarce resources
traditional economy- p. 38
families clans and tribes make economic decisions based on customs
command economy-p. 39
the government decides what goods and services will be produced
1. Define the following terms:
wants:Things that are not needed for survival
needs: Things people need to survive ie food clothes shelter
scarcity:what happens when there are not enough resources to fill wants
economics:the study of how people use scarce
1. Define the following vocabulary words:
way govt uses scarce resources
2. Traditional economy:
based on reliefs and customs
3. Command economy:
govt controls production
4. Market economy:
consumers and producers decide what to produce
List the six goals for writing the new Constitution listed in the Preamble.
Establish Justice, insure domestic tranquility, provide for a common defense, promote the
general welfare, secure the blessings of liberty, form a more perfect union
What are the
Who stated that the Constitution should be revised every generation or so?(79)
2. Do you think James Madison agreed that the Constitution should be revised every
generation or so? Why? (Give me proof/reason of your answer.) Against he
Bicameral: having two branches, chambers, or houses, as a legislative body.
Royal colonies: a colony ruled or administered by officials appointed by and responsible to the reigning
sovereign of the parent state.
Charter colonies: a colony, as Virginia, Ma
1. Popular sovereignty p. 70: is the principle that the authority of the government is created and
sustained by the consent of its people, through their elected representatives (Rule by the
People), who are the source of all political power.
2. Limited go
Government:the governing body of persons in a state, community, etc.; administration.
Policy:a definite course of action adopted for the sake of expediency, facility, etc.
State: a politically unified people occupying a definite territory; nation.