Wanna Be a GENIUS? Learn ECONOMICS!

Name:______Date:______Class:______Wanna be a GENIUS? Learn ECONOMICS!

A. Resources Galore! Label the following pictures as natural resource, human capital, capital goods

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B. Name that Economy! Label the following descriptions with More Traditional, More Command, or More Free-Market

11. In this economy, the government makes most economic decisions. ______

12. In this economy, private individuals own most industries and businesses. ______

13. In this economy, most people farm, hunt, and gather the items they need to survive. ______

14. In this economy, supply and demand usually determine what goods and services are produced. ______

15. In this economy, industries are created for entrepreneurs to make a profit. ______

16. In this economy both the government and private individuals own industries. Sometimes supply and demand determine price, but usually the government works to control economic activities. ______

17. Both the government and entrepreneurs work together to control economic activity. However there are more private business owners that control economic activity. ______

18. This economy is usually found in found in Communist countries like Cuba, China, and North Korea. ______

19. In this economy, traditional and free-market economy are mixed together, most activities are done to make a profit for private business owners.______

20. There are more entrepreneurship opportunities in this type of economy. ______C. GDP…Who’s got the wealth? Calculate the following GDPs. 21. In WOODLAND, there are 4 businesses. Bob’s Kabobs earned $15,000 in food sales. Carry’s Cars earned $20,000 in car sales. Bernies’s Bug-Be-Gone earned $10,000 in exterminating services and Dena’s Doggie Spa and Resort earned $10,000 in dog sales and $5,000 in doggie shampoo services. There are 600 people in this country. What is WOODLAND’S GDP?______GDP PER CAPITA? ______

22. In the country of GubbleBum, food is plentiful; however there are not too many businesses. Most people just make their own candy to eat and make clothes from sugar and licorice strips. Sometimes after they make cookies and candy bars, they have a little extra chocolate and would exchange the chocolate for money in the country of SaltySeashell. The country of GubbleBum earns about $700 in sales in this trade. What is GubbleBum’s GDP? ______If GubbleBum has 100 people living in its country what is GubbleBum’s GDP PER CAPITA? ______

23. Long ago there was a country called SupercrazybarbieGiJOE. When this country existed the government said that people could only work as Barbie Doll hairstylists, GI Joe military trainers or sell SuperCrazy T- shirts. The government set production levels and price for these businesses. Every year the Barbie Doll Hair Company earned about $5,000 in services. The SuperCrazy T-shirt store sold about $10,000 worth of T-shirts. What is SupercrazybarbieGIJOE’s GDP? ______If there are 500 people who live here what is the GDP PER CAPITA? ______

24. Using questions 21-23, which country is the wealthiest?______

25. Using questions 21-23, which country is the least wealthy? ______

D. ECONOMY ECONOMY ECONOMY: Based on what you read above, identify the type of economy used in each country. Then RASCAL questions 29&30.

26. WOODLAND______27. GubbleBum ______28. SupercrazybarbieGiJOE ______

29. Which economy would you prefer to live in and why? ______30. Explain how free-market economies work. Include the following in your response - Who makes the economic decisions? Who determines price? Who determines what is produced? ______