SY21 The American Economy

Which of these is considered a service?

• a car

• a burrito

• a mechanic

• a sofa

An individual can earn ___________ by making goods and services in the economy.

• GDP

• market value

• income

• factors of production

A person who takes the risk to start a business is called a(n)

• developer

• entrepreneur

• strategist

• economist

Gross Domestic Product or GDP measures the value of

• all intermediate goods sold in a specific country

• all services done in a country during one year

• all final products produced in a country in one year

• all workers hired in a country during one year

Which of these would be considered an intermediate good?

• a computer

• a book

• a nail

• a chair

Which of these would be counted in GDP?

• The sale of a used car between 2 neighbors

• Cooking a large dinner for your family

• The purchase of fabric used to make a shirt

• The purchase of a laptop from a store

GDP per capita means GDP

• for a period or 4 years

• per person

• after an economic recession

• that only includes services

Which of these is a characteristic of a free-enterprise system?

• individuals need gov't approval to start a business

• only large groups may start a new business

• businesses are heavily regulated by the gov't

• individuals and groups are free to start their own businesses

In the U.S., the prices of goods and services are determined by

• market forces

• state government officials

• federal gov't officials

• tradition

Which of these is considered a motive for people to start a business?

• earning a profit

• voluntary exchange

• factors of production

• gov't regulation of businesses