Chapter 2 Economics Part 1

4. The study of the behavior of the overall economy.
5. The government plays a significant role in determining the goods and services produced and distributed.
8. Blend of market and planned economies.
9. Economic system whereby the government owns or controls many basic businesses and services, and the profits from them are distributed evenly among the people.
10. Economic system in which a state’s government makes all economic decisions and controls all social services, as well as many of the major resources required for the production of goods and services.
12. Unit of exchange for the transfer of goods and services and provides a consistent standard.

1. Individuals make their own economic decisions.
2. Study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services.
3. Conversion of government-owned production and services to privately owned, profit-seeking enterprises.
6. Study of how individuals and businesses make decisions to best satisfy wants, needs, and desires with limited resources.
7. System that tries to balance the available resources of a country, such as land, capital, and labor, against the wants and needs of consumers.
11. Mechanism by which buyers and sellers exchange goods and services.