Ch 17 America's Economy

A new rainbow Pop-It goes viral online. Every kid wants it, but they are super hard to find in stores now that they gained so much popularity. What do you think will happen to the price and why?

• The price will go down because supply is lower than demand.

• The price will go up because supply is lower than demand.

• The price will go down because supply is higher than demand.

• The price will go up because supply is higher than demand.

When the demand for goods is higher than the supply, the price...

• increases.

• decreases.

• stays the same.

• is determined by the government.

Which statement is true about a free market economy?

• Prices change because of supply and demand.

• The government controls the economy with taxes.

• The governement chooses the available goods the consumer can buy.

• Prices are chosen by the president.

Hamilton and Jefferson had different opinions on the economy and the government. What did Washington do?

• He took control of the economy.

• He chose not to have a free market economy.

• He gave the governement little power in the economy.

• He put Hamilton in charge of the treasury.

What is a tax on goods from other countries?

• addition

• interest

• tariff

• supply

The Constitution gives people the right to

• choose what they want to do for a job.

• avoid paying taxes.

• use electricity in cities in the US.

• maintain an isolated market.

What part of the government is responsible for collecting taxes?

• Army

• Senate

• Treasury

• Supreme Court

What is the main role that producers play in our economy?

• They buy services from others.

• They borrow money.

• They create goods.

• They control trade.

The Constitution gives the government the ability to

• borrow money.

• create money.

• make laws about trade.

• all of the above.

Which of the following is an example of specialization?

• Prices rise when demand increases.

• The Treasury prints money for people to use.

• People's ideas are protected under the law.

• States in the South mainly produced cotton.