Community & Economy Review

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

• Only people who use them

• Government

• Taxpayers

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 a business.

• True

• False

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

• private goods/services

• net pay

• taxes

• prototype

The amount of money an employee receives after taxes and other deductions are taken from a paycheck is called ________.

• right

• gross pay

• taxes

• net pay