Chapter 4

money given to an individual or business to allow them to make purchases they cannot currently afford.

• loans

• income

• taxes

• labor

organizes natural, human, and capital resources to produce goods and services that they sell to earn money. They sell their goods and services to households, other businesses, and the government.

• sectors

• businesses

• government resources

• banks

produces goods and services that are not easily provided such as national defense, roads, transportation, and education

• teachers

• households

• government function

Which is NOT one of the four sectors of the economy?

• customers

• entrepreneurs

• businesses

• government

money collected by local, state, and federal government that allows them to pay for public goods and services

• cash

• taxes

• offering

keeps money safe; allows for trade through having accounts (checking accounts) as well as debit and credit cards

• wallet

• savings account

• banks

• locked safe

banks pay this to customers that keep their money there and it is paid on loan when a customer borrows from the bank

• interest

• loan

• trade

Characteristics of entrepreneurs include:

• high level of perseverance

• knowledge seekers

• risk takers

• lazy

Which is a risk of an entrepreneur?

• high competition

• no regular salary

• long hours

• stress from decision making

• All of the above

This sector is made up of people who sell their labor and earn income.

• households

• government

• banks