Skip to main content
K12 LibreTexts

3.8: Unit 3- Basic Understandings, Vocabulary, and Objectives

  1. Last updated
  2. Save as PDF
  • Page ID
    1693

    • \( \newcommand{\vecs}[1]{\overset { \scriptstyle \rightharpoonup} {\mathbf{#1}} } \) \( \newcommand{\vecd}[1]{\overset{-\!-\!\rightharpoonup}{\vphantom{a}\smash {#1}}} \)\(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\) \(\newcommand{\id}{\mathrm{id}}\) \( \newcommand{\Span}{\mathrm{span}}\) \( \newcommand{\kernel}{\mathrm{null}\,}\) \( \newcommand{\range}{\mathrm{range}\,}\) \( \newcommand{\RealPart}{\mathrm{Re}}\) \( \newcommand{\ImaginaryPart}{\mathrm{Im}}\) \( \newcommand{\Argument}{\mathrm{Arg}}\) \( \newcommand{\norm}[1]{\| #1 \|}\) \( \newcommand{\inner}[2]{\langle #1, #2 \rangle}\) \( \newcommand{\Span}{\mathrm{span}}\)\(\newcommand{\AA}{\unicode[.8,0]{x212B}}\)

    Unit 3 - Basic Understandings

    • In a free enterprise system the individual has choices as a producer and a consumer.
    • The U.S. economy is characterized by a variety of business models.
    • Business owners have the right to own, use, and dispose of property, yet also have the responsibility to follow government regulations.
    • Economic growth is fostered by innovation, productivity, and technology and is measured by key indicators.

    Unit 3 - Vocabulary

    entrepreneurship - the willingness and innovation needed to risk starting a business

    sole proprietorship - a business owned and managed by a single individual

    partnership - a business owned and managed by two or more individuals as co-owners

    corporation - a business owned by shareholders and managed by directors and executives

    business cycle - a repetitive pattern of growth and decline in economic activity

    inflation - a general increase in the price of goods and services

    Gross Domestic Product - the market value of all goods and services produced in a country during a specific time period

    unemployment - condition in which those seeking jobs are unable to find jobs

    productivity - a measure of the efficiency of the production of goods and services

    Unit 3 - Related Vocabulary

    • economic indicators
    • ordinances
    • innovation
    • expansionary period
    • contractionary period
    • housing starts
    • retail sales
    • deregulation
    • stocks / bonds

    Why Entrepreneurs are Important for the Economy

    Unit 3 TEKS

    (6) Economics. The student understands the right to own, use, and dispose of private property. The student is expected to:

    (A) analyze the costs and benefits of the purchase, use, or disposal of personal and business property; and

    (B) identify and evaluate examples of restrictions that the government places on the use of business and individual property.

    (8) Economics. The student understands types of market structures. The student is expected to:

    (A) describe characteristics and give examples of pure competition, monopolistic competition, oligopoly, and monopoly; and

    (B) identify regulation that apply to the establishment and operation of various types of market structures.

    (9) Economics. The student understands key economic measurements. The student is expected to:

    (A) interpret economic data, including unemployment rate, gross domestic product, gross domestic product per capita as a measure of national wealth, and rate of inflation; and

    (B) analyze business cycles using key economic indicators.

    (10) Economics. The student understands key components of economic growth. The student is expected to:

    (A) analyze how productivity relates to growth;

    (B) analyze how technology relates to growth; and

    (C) analyze how trade relates to growth.

    (13) Economics. The student understands the role that the government plays in the U.S. free enterprise system. The student is expected to:

    (A) describe the role of the government in the U.S. free enterprise system and the changes in that role over time; and

    (B) analyze the costs and benefits of U.S. economic policies, rules, and regulation related to the economic goals of economic growth, stability, full employment, freedom, security, equity (equal opportunity versus equal outcome), and efficiency.

    (15) Personal Financial Literacy. The student understands types of business ownership. The student is expected to:

    (A) explain the characteristics of sole proprietorships, partnerships, and corporations; and

    (B) analyze the advantages and disadvantages of sole proprietorships, partnerships, and corporations.

    (16) Personal Financial Literacy. The student understands the role of financial markets/institutions in saving, borrowing, and capital formation. The student is expected to:

    (A) explain the functions of financial institutions and how the affect households and businesses;

    (B) explain how the amount of savings in an economy is the basis of capital formation.

    This page titled 3.8: Unit 3- Basic Understandings, Vocabulary, and Objectives is shared under a CC BY-NC license and was authored, remixed, and/or curated by CK-12 Foundation via source content that was edited to the style and standards of the LibreTexts platform; a detailed edit history is available upon request.