Module 5: Economics

Front

Why is a profit motive important in many economies?

Back

People would not start businesses without it.

Front

Which of the following scenarios accurately illustrates the concept of economic interdependence?
- An entrepreneur decides to open a bakery and produces bread for the neighborhood.
- Good rainfall allows a farmer to produce more strawberries and he chooses to expand his business.
- Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.
- South Africa is rich in diamonds, gold, and mineral resources, so South Africa creates a mining industry that produces much wealth.

Back

Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.

Front

Why must governments ensure that corporate taxes are not too high?

Back

Businesses will not make a profit.

Front

Which investment option would fall on the upper right portion of the graph?

Back

stocks

Front

How can customers feel certain that their money stored in U.S. banks is safe?

Back

Money deposits are insured.

Front

Why might a person who plans to buy a car in nine months choose to invest in a certificate of deposit (CD)? Options: CDs offer a better rate of return than stocks., CDs offer a better interest rate than savings accounts., Customers can cash their CD at any time when they find a good car deal., Customers can withdraw their money from a CD at any time without a penalty.

Back

CDs offer a better interest rate than savings accounts.

Front

Which country did the United States have a trade embargo against starting in the early 1960s?

Back

Cuba