Module 5 End of Module Assessment

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.

Raw materials used to produce goods.

• labor

• capital

• financial capital

• natural resources

Human time, effort, skills, and talent needed to produce goods.

• labor

• capital

• financial capital

• natural resources

Money that a business uses to buy the items needed for the business to function.

• labor

• capital

• financial capital

• natural resources

Items such as tools, machines, factories, and office equipment needed for a business to function.

• labor

• capital

• financial capital

• natural resources

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

• An entrepeneur decides to open a bakery and produces bread for the neighborhoo.

• 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.

What kind of economy does China have?

• capitalist

• communist

• socialist

What kind of economy does Sweden have?

• capitalist

• communist

• socialist

What kind of economy does Taiwan have?

• capitalist

• communist

• socialist

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.