19
Copyright Goodheart-Willcox Co., Inc.
7. Describe the factors of production.
8. Summarize the characteristics of the private enterprise system.
9. How does the law of supply and demand affect the market price o f a product?
10. Explain profit motive as a market force.
Apply Your Knowledge
1. A major task of business is to provide utility. Explain how the five types of utility can be
added to a common product, such as milk or gasoline. List each form of utility and write your
explanation next to each.
2. Create a flow chart of the decision-making process to use as a reference as you study this text.
For each step, write a brief explanation of what is included. Write any additional notes in the
chart that will provide clarification for your future use.
3. Compare and contrast the types of economic systems: traditional, command, market economy,
and mixed economy. How are these systems the same? How are they different? Summarize
your findings. Create a Venn diagram or other graphic organizer to visually display the
information.
4. A private enterprise system has specific characteristics. List each of these characteristics and
summarize what each characteristic means to the American public.
5. Explain the basic principles of supply and demand. What effect do you think this principle
has on human behavior? Give an example in which the principles of supply and demand
result in positive behavior. Give an example in which behavior becomes negative.
Communication Skills
Reading. Skimming means to quickly glance through an entire document.
Skimming will give you a preview of the material to help comprehension when
you read the chapter. You should notice headings, key words, phrases, and visual
elements. The goal is to identify the main idea of the content. Skim this chapter.
Provide an overview of what you read.
Writing. Generate ideas for writing a paper that describes the concept of business as
you interpret it. Gather information to support your thoughts and ideas. Keep careful
and accurate records of any sources that you use as references. Create the notes that
you could use to write a paper to distribute for discussion with your classmates.
Speaking. Career ready individuals understand that demonstrating leadership qualities is a way
to make a positive contribution to the team. Identify leadership characteristics that you believe all
team members should possess. Use a graphic organizer to record your ideas. Share with the class.
College
and Career
Readiness