Social Studies 7-12 PACT Questions and
Answers Rated A+
Free Trade ✔✔the ability for one country to trade with another without hindrance so that all
goods can be produced with the greatest efficiency
Sole Proprietorships ✔✔a business where a single person acts as the owner and operator of the
business with no distinction between the person and the business
Comparative Advantage ✔✔the ability to produce a good at a lower opportunity cost than
another producer
Market ✔✔a space in which goods are exchanged
Perceived Value ✔✔how desirable a product is to the consumer
Law of Demand ✔✔as the price of a good increases, the less quantity of the good will be
demanded
,Price Controls ✔✔A maximum price set by the government allowed to be charged for a
particular good
Tariff ✔✔a tax placed on a specific type of imported or exported good
Factor Market ✔✔a market in which the factors of production are bought and sold. (labor
market)
Absolute Advantage ✔✔The ability of an entity to produce more of a good or service than
another entity using the same amount of resources
Monopoly ✔✔A market where one firm controls the price, production, and supply of a good
Means of Production ✔✔The non-human resources used to produce goods in an economy
Oligopoly ✔✔A market where only a few sellers are present
,Cost-Benefit Analysis ✔✔Consideration of what one gains and loses from a set of economic
choices
Interdependence of Economies ✔✔all economies require each other to function
Economies of Scale ✔✔a reduction in the price of per-unit production resulting from producing
more at once (buying raw materials in bulk)
Mixed Economy ✔✔a market economy with varying levels of government intervention
Opportunity Cost ✔✔The cost of the next best opportunity a person gives up when they make an
economic choice
Communism ✔✔A political theory and economic system in which all property is publicly owned
and each person works and is paid according to their abilities and needs.
Factors of Production ✔✔The determinants of when and where economic activity can and most
likely will occur: land, labor, capital, and entrepreneurship
, Traditional Economy ✔✔An economy where goods are produced mainly for consumption by
one's own family and traded or bartered in only the most basic ways
Scarcity ✔✔In Economics, the fact that there are not enough resources to fulfill all human needs
and desires
Law of Supply ✔✔as the price of a good increases, a greater quantity of the good will be
supplied
Trade ✔✔the exchange of products for money between entities
Slopes ✔✔the rates at which the curves increase or decrease
Surplus ✔✔when the quantity supplied is greater than the quantity desired
Trade Barriers ✔✔obstacles to trade (government regulations)
Answers Rated A+
Free Trade ✔✔the ability for one country to trade with another without hindrance so that all
goods can be produced with the greatest efficiency
Sole Proprietorships ✔✔a business where a single person acts as the owner and operator of the
business with no distinction between the person and the business
Comparative Advantage ✔✔the ability to produce a good at a lower opportunity cost than
another producer
Market ✔✔a space in which goods are exchanged
Perceived Value ✔✔how desirable a product is to the consumer
Law of Demand ✔✔as the price of a good increases, the less quantity of the good will be
demanded
,Price Controls ✔✔A maximum price set by the government allowed to be charged for a
particular good
Tariff ✔✔a tax placed on a specific type of imported or exported good
Factor Market ✔✔a market in which the factors of production are bought and sold. (labor
market)
Absolute Advantage ✔✔The ability of an entity to produce more of a good or service than
another entity using the same amount of resources
Monopoly ✔✔A market where one firm controls the price, production, and supply of a good
Means of Production ✔✔The non-human resources used to produce goods in an economy
Oligopoly ✔✔A market where only a few sellers are present
,Cost-Benefit Analysis ✔✔Consideration of what one gains and loses from a set of economic
choices
Interdependence of Economies ✔✔all economies require each other to function
Economies of Scale ✔✔a reduction in the price of per-unit production resulting from producing
more at once (buying raw materials in bulk)
Mixed Economy ✔✔a market economy with varying levels of government intervention
Opportunity Cost ✔✔The cost of the next best opportunity a person gives up when they make an
economic choice
Communism ✔✔A political theory and economic system in which all property is publicly owned
and each person works and is paid according to their abilities and needs.
Factors of Production ✔✔The determinants of when and where economic activity can and most
likely will occur: land, labor, capital, and entrepreneurship
, Traditional Economy ✔✔An economy where goods are produced mainly for consumption by
one's own family and traded or bartered in only the most basic ways
Scarcity ✔✔In Economics, the fact that there are not enough resources to fulfill all human needs
and desires
Law of Supply ✔✔as the price of a good increases, a greater quantity of the good will be
supplied
Trade ✔✔the exchange of products for money between entities
Slopes ✔✔the rates at which the curves increase or decrease
Surplus ✔✔when the quantity supplied is greater than the quantity desired
Trade Barriers ✔✔obstacles to trade (government regulations)
