Sectors of the Economy

What is the best description of a household?

• A consumer

• A provider of labor

• A house and all of its occupants

• All answer choices

What do households trade for goods?

• Food

• Money

• Goods

• Railroads

How do banks make a profit?

• Interest off of loans

• Customer service

• Selling cars

• Buying houses

Banks make it possible for people and businesses to purchase what they need without having all of the money by offering LOANS.

• True

• False

What is the best description of a loan?

• Borrowing money without repaying it

• Borrowing money and giving it to friends

• Borrowing money and repaying it with interest

What is a function of the US government in the economy?

• Collect taxes

• Provide services to citizens and businesses

• Central banking system

• All of the answer choices

The government uses tax money to help build schools, roads, hospitals, and pay public service workers (police, fire fighters, teachers).

• True

• False

What is the best example of a private business?

• A person buying soap

• A person buying gasoline

• A boy purchasing a skateboard

• A restaurant selling soup

Private businesses are producers of goods, but NOT services.

• True

• False

What do households need private businesses to create?

• Consumers

• Jobs

• Weather