JA Biztown Unit 2 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 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 to produce?

• How much profit will be made?

• For whom to produce?

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

• True

• False

Due to scarcity, people cannot have all of the things they want.

• False

• True

Businesses produce goods and services for citizens who in turn supply labor and other resources to the businesses.

• True

• False

Who pays for public goods and services?

• Philanthropists

• Only people who use them

• Government

• Taxpayers

Resources are the goods people buy from business.

• False

• True

What are the three types of resources?

• Natural, Human and Capital

• Air, Water and Earth

• Sun, Wind and Earth

• Human, Unnatural and Capital

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

• Public Goods and Services

• Private Goods and Services