Biz Town Community and Economy

Which best describes the circular flow of an economy?

• the flow between businesses and resources
• the exchange of money, goods, and services in an economy
• happens only in a resource market
• happens only in a goods and services market

Which is NOT true of public goods and services?

• shared by everyone - sometimes at the same time
• only given to the needy
• no one is prevented from using them
• are paid for by taxes

Which is not a basic economic question faced by an economy?

• what to produce
• how to produce
• how much profit will be made
• for whom to produce

Who pays for public goods and services?

• philanthropists
• taxpayers
• only people who use them
• government

A free enterprise economy is a system in which economic decisions are made in markets by consumers and businesses.

• True
• False

Due to scarcity, people cannot have all of the things they want.

• True
• False

Businesses produce goods and services for citizens, who in turn supply labor and other resources to the businesses.

• True
• False

Resources are the goods people buy from business.

• True
• False

Which of the following is NOT a type of resource?

• natural resources
• human resources
• capital resources
• book resources

The merchandise, skills, and knowledge offered for sale by businesses or citizens are called

• private goods and services
• public goods and services
• public goods and private services
• private goods and public services