Module 5 Economics Quiz

Why is a profit motive important in many economies?

• Businesses could not advertise without it.

• People would not start businesses without it.

• People would not use coupons without it.

• Businesses could not set prices without it.

Raw materials needed to produce goods

• financial capital

• natural resources

• capital

• labor

Items such as tools, machines, factories, and office equipment needed for a business to function

• financial capital

• natural resources

• capital

• labor

Human time, effort, skills, and talent needed to produce goods

• financial capital

• natural resources

• capital

• labor

Money that a business uses to buy the items needed for the business to function

• financial capital

• natural resources

• capital

• labor

Which of the following scenarios accurately illustrates the concept of economic interdependence?

• Japan lacks iron to make steel, so Japan enters into a trading relationship with Australia and Brazil, who supply Japan with iron ore.

• Good rainfall allows a farmer to produce more strawberries and he chooses to expand his business.

• South Africa is rich in diamonds, gold, and mineral resources, so South Africa creates a mining industry that produces much wealth.

• An entrepreneur decides to open a bakery and produces bread for the neighborhood.

This country has a socialist economy.

• Taiwan

• Sweden

• China

This country has a communist economy.

• Taiwan

• Sweden

• China

Match the type of industry with its description.

A farmer sells milk produced from dairy cows.

• quaternary industry

• secondary industry

• primary industry

• tertiary industry

How can customers feel certain that their money stored in U.S. banks is safe?

• It is very difficult to steal money from banks.

• Most banks have good security systems.

• Many banks have armed guards.

• Money deposits are insured.