Community and Economy Assessment

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 on is prevented from using them

• are paid for with taxes

Which of the following is NOT a basic economic question?

• What to produce?

• For whom to produce?

• How to produce?

• How much profit to be made?

Who pays for public goods and services?

• taxpayers

• philanthropists

• only people who use them

• government

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

• True

• False

Due to scarcity, people cannot have all 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 that people buy from business.

• True

• False

What are three types of resources?

• human resources

• community resources

• capital resources

• natural resources

Payments that citizens are required to make to the government are called...?

• trades

• products

• taxes

• profits