Economic Concepts - Unit 12

Multiple Select

Which of the following demonstrates elements of the free market in the United States economy? Select all that apply (2 correct answers).

• Bridget thinks lunch at Pizza Palace is too expensive, so she eats at Antonio's Pizza instead.

• Hailee, a restaurant owner, makes sure to keep the kitchen clean in case a state health inspector comes.

• Payton receives two job offers for similar positions and accepts the job that pays more.

• American Motor, a car manufacturer, must reduce its cars' emissions to meet federal requirements.

Match

Match the example to the term. Pay attention to who the subject of the sentence is and whether the subject is gaining or losing money.

• A customer buys school supplies from a manufacturer.

• A school supplies manufacturer makes money from a sale.

• A school supply manufacturer pays its employees.

• A worker makes money by working for a school supplies manufacturer.

spending

revenue

costs

income

• spending

• revenue

• costs

• income

Match

Match the example to the term.

• The government pays for the resources and labor to build a Navy ship.

• Teachers who work for public schools teach classes.

• The government pays part of the cost of a business installing solar panels.

• The government helps low-income families pay for food.

government spending on products

public services

subsidies

welfare

• government spending on products

• public services

• subsidies

• welfare

Multiple Select

Select the items that represent good conditions. Select all that apply (2 correct answers).

• A tech company hires people to work on a new project.

• People are not spending a lot of money.

• A grocery store that pays hourly gives employees fewer shifts.

• A new model of a car sells out quickly.

Match

Match the situation to the term.

• Increased prices of many goods make the cost of living higher.

• A store gains revenue from sales and uses part of its revenue to pay workers.

• Many people are buying smartphones, so a tech company produces more smartphones.

inflation

circular flow of money

supply and demand

• inflation

• circular flow of money

• supply and demand