Economics Unit Test Review

The economic flow in the U.S. consists of which THREE groups?

• businesses

• individuals (households)

• schools

• government

• charitable foundations

Banks and other private financial institutions bring together, savers and _____.

• taxes

• the government

• borrowers

• criminals

What is a possible solution to this problem?

• Use technology

• Charge consumers more money

• Use outdated machinery

• Purchase more expensive parts

Match the following types of Businesses with their Definitions.

• 1 owner who takes all risks & all profit

• Proprietorship

• 2 or more owners; share risks & profits

• Partnership

• Act as legal person; investors share $$$

• Corporation

What are the THREE types of financial institutions?

• Post office

• Savings & Loan

• Banks

• Credit Unions

Joseph works as a cattle farmer because his father did the same job, event hough he has excellent skills as a computer programmer. What type of economic system does Joseph live in?

• free market

• traditional

• mixed

• command

In the American economy, buyers determine what is produced by the purchase they make. The power of the buyer is known as...

• Opportunity Cost

• Incentives

• Capital Resources

• Consumer Sovereignty

What is the best title for this graphic organizer?

• the three basic questions of proprietorship

• the three basic questions of entrepreneurship

• the three basic questions of economics

• the three basic questions of scarcity

Where supply and demand meet is known as the...

• balance

• profit

• equilibrium price

• opportunity cost

You only have enough money to buy either an iPad or an iPhone. You decide to purchase the iPhone. The iPad you did not buy is called the...

• Opportunity Cost

• Resources

• Demand

• Supply