CFA Module 5: Economics

Front

Why is a profit motive important in many economies?

Back

People would not start businesses without it.

Front

Economic term that refers to assets used for production of goods and services.

Back

capital

Front

The people who organize, manage, and assume all risk and reward having to do with running a business.

Back

Entrepeneurs

Front

Drag the economic term into the box next to its description. Match the following: Options: labor, capital, financial capital, natural resources

Back

labor

Front

Description: Resources that occur naturally in the environment and can be used for economic gain. Options: labor, capital, financial capital, natural resources

Back

natural resources

Front

Which scenario illustrates economic interdependence?

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

Match the country to its type of economy: Cuba, Sweden, Taiwan.

Back

Cuba

Front

Match the country to its type of economy: Cuba, Sweden, Taiwan.

Back

Sweden

Front

Match the country to its type of economy: Cuba, Sweden, Taiwan.

Back

Taiwan

Front

Why is it important for governments to keep corporate taxes low if profit motive encourages business growth?

Back

Higher taxes reduce profit.