SS8B Final Exam

Front

Why is there interdependence among nations?

Back

because each country has unique and limited resources

Front

What does the government use to track the market value of goods and services produced in a given year?

Back

gross domestic product

Front

In a free market economy economic decisions are made by the government.

Back

False

Front

In a mixed market economy economic decisions are influenced by the government but made by producers and consumers

Back

True

Front

In a command economy economic decisions are influenced by the government but made by producers and consumers

Back

False

Front

The primary motive of business in a mixed market economy is to make a profit?

Back

True

Front

The main benefit of insurance is that it protects against financial risks.

Back

True

Front

What is opportunity cost?

Back

the value of the best alternative not chosen

Front

Why is diversifying investments beneficial?

Back

Diversification reduces the overall risk.

Front

What is the concept that a dollar in hand today is worth more than a dollar received in the future called?

Back

time value of money