Competency 22 Economics

major economic systems

  1. Traditional Systems
  2. Command Systems
  3. Market Systems

are the 3… 

Market Systems
Individuals control production of goods and distribution of resources in this economic system
Free Enterprise

  • this system led to globalization
  • the idea of businesses having the freedom to operate for a profit with little government intervention
  • same as market economy and capitalism

Supply and Demand

  • the idea that the amount of goods produced will be determined by the demand for those goods
  • the amount of good available and the desire to own and pay for something

Free Enterprise System

  1. economic freedom
  2. voluntary exchange
  3. private property rights and
  4. profit motive

are all characteristics of the…

supply and demand
more goods will be bought at lower prices and fewer goods will be bought at higher prices are the forces of…
the amount of goods available
the desire to want something and pay for it

  • wants
  • needs
  • goods and
  • services

are all basic concepts for…

land, labor, capital, surplus, scarcity, limited resources, producer, consumer, and Mass Production are all factors of…

  • the quantity supplied of a good is greater than the quantity demanded
  • this will cause the price of the good to decline


  • the supply of a good does not satisfy the demand for the good
  • this will cause the price of a good to increase

mass production
a way to produce goods at once such as using an assembly line, division of workers, and interchangeable parts is known as…
assembly line
produces a good by moving down a line of workers
interchangeable parts
pieces that are the same and easy to build and repair goods are known as…
division of labor
when the work to be performed is divided into separate tasks
pre-industrial revolution

during this time frame:

-society was largely rural

-most were farm workers and

-the economy was mostly of goods made by hand

post-industrial period

during this period,

*society was largely urban

*most were specialized workers

*the economy is highly diversified

*good are manufactured by machines

Industrial Revolution
the steam power, economic growth, rise in immigration, inexpensive goods, technology innovations, child labor, city population growth, and the establishment of trade unions led to the…
People moved to cities causing a population shift from rural to urban areas

Cause: improvement in farming technology

Led to: fewer jobs for farm workers

The effect would be that…

North American Free Trade Agreement (NAFTA)
An agreement between the US, Canada, and Mexico, signed in 1993, to reduce tariffs and encourage trade
good brought into a country for sale
goods sent out of a country for sale
trade surplus
when a nations’s exports is more than imports
primary, secondary, tertiary, and quarternary are all sectors of…
more workers are well educated in economically developed countries
Tertiary sector, dealing with teaching law, healthcare, and banking, as well as the Quarternary sector, dealing with information technology and scientific research are sectors of the economy in which…
Texas in the late 1800s
the production of cottonseed, oil, flour milling, timber, meat packing, and mining were the leading industries for what state and what year
Texas in the 1940s
production of cottonseed oil, petroleum refining, and continuation of meat packing and flour milling were the leading industries in what state and year?
Texas Industries
agriculture, cattle ranching, cotton, railroads, oil and lumber are all a part of…
The establishment of new towns across the US on railroad routes

Cause: the completion of railroads led to opening of the west

This resulted in what effect?


oil was discovered here in 1901 in Beaumont, Texas

It led to the boom of oil and gas and became the major source of revenue for Texas

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