Global Economy

Worldwide markets in which the buying and selling of good and services takes place is known as the what?

• National Economy

• Global Economy

• US Economy

• Mixed Economy

Identify two of the reasons nations trade.

• To buy goods and services at a lower cost.

• To have lower opportunity cost

• To produce more resources

• To give more taxes to national governments

Which of the following is a reason nations trade?

• To produce more resources for their own country

• To increase the income of government officials

• To obtain goods they cannot produce themselves

Engaging in global trade creates jobs.

• True

• False

How does engaging in global trade increase competition?

• Companies can sell goods and services to other countries

• Taxes coming in from other countries increases profits

• Tariffs allow businesses to grow

• You can eat food from all over the world.

Virginia and the United States specialize in the production of certain goods and services that promote _______ and growth.

Innovations in technology contribute to the global flow of what?

• Information

• Capital

• Goods

• Services

What is a benefit of technology?

• It lowers the cost of production

• It raises the cost of produciton

• Helps increase prices

• Causes many people to be out of work

Identify the three types of private financial institutions

• Banks

• Savings and Loans

• Credit Unions

• IRS

According to the flow chart, what do consumers provide that producers need and pay the consumers for?

• Income

• Public Goods

• Taxes

• Resources