Economics

Why is a profit motive important in many economies?

• People would not use coupons without it.

• Businesses could not advertise without it

• Businesses could not set prices without it.

• People would not start businesses without it.

Name the economic term for raw materials needed to produce goods

• Labor

• Capital

• Financial Capital

• Natural Resources

Name the economic term for human time, effort, skills, and talent needed to produce goods

• Labor

• Capital

• Financial Capital

• Natural Resources

Name the economic term for money that a business uses to buy the items needed for the business to function

• Labor

• Capital

• Financial Capital

• Natural Resources

Name the economic term for items such as tools, machines, factories, and office equipment needed for a business to function

• Labor

• Capital

• Financial Capital

• Natural Resources

1. Which of the following scenarios accurately illustrates the concept of economic interdependence?

• An entrepreneur decides to open a bakery and produces bread for the neighborhood.

• Good rainfall allows a farmer to produce more strawberries and he chooses to expand his business.

• Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.

• South Africa is rich in diamonds, gold, and mineral resources, so South Africa creates a mining industry that produces much wealth.

Name of the country with a capitalist type of economy.

• China

• Sweden

• Taiwan

Name of the country with a communist type of economy.

• China

• Sweden

• Taiwan

Name of the country with a socialist type of economy.

• China

• Sweden

• Taiwan

Why must governments ensure that corporate taxes are not too high?

• Public services will suffer.

• Businesses will not make a profit.

• The government cannot invest in education.

• The government cannot invest in national defense.