BizTown - Community & Economy

Which best describes the circular flow of an economy?

• the motion between people 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 of the following is not a basic economic question?

• what to produce?

• how much profit will be made?

• how to produce?

• for whom to produce?

Who pays for PUBLIC goods and services?

• philanthropists

• taxpayers

• only people who use them

• government

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

• True

• False

True or false? Due to scarcity, people cannot have all of the things they want.

• True

• False

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

• True

• False

True or false? Resources are the goods people buy from business.

• True

• False

What are the three types of resources? SELECT 3 BELOW:

• natural resources

• special resources

• human resources

• capital resources

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

• Government services

• Community services

• Private goods and services

• State resources