Econ Review

What role does government play in the circular flow model?

• purchases goods and services in the product market
• collects taxes from businesses and individuals
• purchases resources in the factor market
• all of the above

FICA, Medicare, Income, and Social Security taxes are examples of:

• National taxes
• Local taxes
• state taxes

Walmart sets the price of cheese at 2.00 a pound. Meijer then lowers the price of the same cheese at their store..this is called

• demand

• scarcity

• competition

The xbox is built on an assembly line. Each person does one specific job. This is called...

• division of labor

• supply and demand

• economics

A market economy has?

• freedom

• money

• time

• people

Someone who wants to control every aspect of their business should form this type of business.

• Sole Proprietor

• Partnership

• Corporation

A father who wants to take his son into the business with him should form this type of business.

• Sole Proprietorship

• Partnership

• Corporation

Louise and Susan are meeting to plan a new advertising campaign for the town newspaper they own. What type of business do they have?

• Sole Proprietorship

• Partnership

• Corporation

When Luigi's Pizzeria went out of business, he was still responsible for paying all of the restaurant's bills. What type of business did he have?

• Sole Proprietorship

• Partnership

• Corporation

This business is legally separate from individual owners, and the owners are not personally responsible for debts and obligations of the business. What type of business is it?

• Sole Proprietorship

• Partnership

• Corporation