Biztown- Community and Economy

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 inn a goods and services market

Which is not true of public goods and services?

• shared by everyone

• only given to the needy

• no one is prevented from using them

• are paid for by taxes

Who pays for public goods and services?

• philanthropists

• only people who use them

• the government

• taxpayers

True or False?

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

• True

• False

True or False?

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

• True

• False

True or False?

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

• True

• False

True or False?

Resources are the goods people buy from businesses.

• True

• False

Which are types of resources? Select all correct answers.

• Human resources

• Natural resources

• Imaginary resources

• Capital resources

The merchandise and skills offered for sale by businesses are called...

• goods and bads

• services and games

• goods and services

• services and trials

Payments that citizens are required to make to governments are called...

• gifts

• presents

• fines

• taxes