Ch 2 Economic Activity: Section 3

Ch 2 Economic Activity: Section 3

Multiple Select

Which of the following is a capital purchase? (Check all that apply)

• A warehouse manager buying new forklifts.

• A restaurant buying an industrial freezer.

• A sales rep paying for a client's lunch.

• A landscaper borrowing a lawnmower for a week.

Multiple Choice

True or False? A budget surplus is when the government spends less than what it takes in.

• True

• False

Multiple Choice

Equity refers to

• reduced spending by government

• ownership in a company or other asset

• borrowing to finance a capital project

• increased government taxes

Multiple Choice

Which of the following would most likely cause a budget surplus for government?

• higher spending

• lower spending

• higher borrowing

• lower taxes