GED Economics Practice Test Vocab

Natural resources, capital, labor, and entrepreneurs

• Law of Supply and Demand

• Resources needed for a free market economy to produce goods and services

• A communist economy

• Natural Resources

In a communist economy who makes all business decisions?

• Entrepreneurs

• The Law of Supply and Demand

• The Government

• Business Owners

Which economic system is founded on the right to private property and the freedom of people to buy and sell things for a price determined by supply and demand?

• Fascism

• Socialism

• Communism

• Capitalism

Anything you can buy that you hope will make money for you in the future.

• Capital investment

• Labor

• Natural Resources

• Producer Goods

Money collected by government from businesses and individuals so that government can pay for roads, bridges, and other services.

• Fees

• Revenue

• Taxes

• Inome

Certificate that shows ownership of a percentage ownership of a company.

• Stock

• Bond

• Rent

• Loan

Certificate that shows that an investor has made a loan to a company or to a government; hoping to be repaid the loan amount plus interest.

• Stock

• Bond

• Equity

• Shares

Tax paid on income

• Income Tax

• Property Tax

• Import Tax

• Export Tax

In a free market economy business decisions are made by

• Federal Government

• State government

• individuals

• Local government

Revenue - Costs =

• Income

• Taxes

• Revenue

• Capital