BizTown Economics

In an economy, who creates or supplies goods and services?

• Producer
• Consumer
• Scarcity
• Philanthropists

What happens when people cannot have everything they want?

• Pollution
• Scarcity
• Captial
• Production

Why would entrepreneurs want a Free Enterprise economy?

• They would not have to work
• Everything is free
• The government lets them make their own business decisions
• The government makes all of the business decisions for them

What resources are used as tools to produce goods and services?

• Natural Resources
• Capital Resources
• Human Resources
• Entrepreneurs 

Country A does not have good quality human resources, what can they do to invest in them (improve them)?

• Grow more natural resources
• Create more tools for them to use in production
• Build more schools and provide better education
• Raise the taxes that citizens pay

How are prices set in a free enterprise economy?

• Agreement between buyers and seller
• Producers set the prices
• Consumers set the prices
• The government sets the prices

How does an entrepreneur contribute the economy?

• Donating money
• Building cities
• Creating jobs
• Teaching students

What is the circular flow of an economy?

• Businesses must have resources
• An exchange of goods for services
• Businesses and consumers depend on each other
• An exchange between resources

Who provides public goods and services?

• Citizens, by paying for resources
• The government, using tax money
• Citizens, by charging money
• The government, by purchasing the resources

What are the three basic economic questions that each economy must answer?

• What to produce
• How to produce
• For whom to produce
• All of the above