Economics

What is the most significant way households and private businesses support the government economically?

• Pay taxes

• provide loans

• perform services

• purchase services

Which statement is true?

• Businesses provide goods and services that households are not able to produce on their own.

• Businesses receive loans from households that pay for the production of goods and services.

• Businesses collect taxes from households to pay for the goods and services businesses provide.

• Businesses receive goods and services from households in exchange for taxes businesses provide.

Which sector of the US economy has the LARGEST role in regulating the economy.

• banks

• government

• households

• private businesses

Becky has a job and wants to by a car, but she can't afford one. How can he he gather enough money to buy a car in the quickest way possible?

• start his own business

• place money in a bank and earn interest

• save a large portion of his income

• apply for a loan

Why do banks loan money to households and businesses?

• because the government pays banks for providing the loans

• because banks earn a profit by charging interest on the loans

• because banks are publicly funded and provide public services

• because the loans are used to buy goods produced by the banks

Rob wants to take out a loan from his bank in order to open a skate shop. What expectation should Rob have?

• to receive money from his employees that will help him repay the loan

• to be so successful that he will be able to pay it back right away

• to have to pay the loan back right when his shop opens

• to make monthly payments to the bank based on the amount of the loan plus interest