Economics Review

The main functions of financial institutions is to receive ____________ and make _____________________.

• loans, taxes

• taxes, loans

• loans, deposits

• deposits, loans

Which of the following earns interest?

• cash

• credit cards

• money in a savings account

• stocks purchased through a broker

CE.10c  A function of financial institutions is to _____________________.

• act as intermediaries between savers and borrowers

• act as intermediaries between consumers and producers

• act as intermediaries between savers and producers

• act as intermediaries between consumers and borrowers

The use of technology lowers the cost of __________________.

• labor

• production

• resources

• rent

Virginia and the United States trade in order to increase all of the following EXCEPT

• power.

• wealth.

• efficiency.

• growth.

In global trade, which has a significant impact on lowering the cost of production of goods and services?

• better wages

• better technology

• lower prices

• more workers

In order to lower costs or opportunity costs, a nation might do which of the following?

• engage in global trade

• look to colonize another country

• hire more workers

• pay better wages to laborers

Iceland has a cold climate; this makes it hard to produce certain foods the people need.  What should they do?

• sell their food to other countries

• trade with other nations

• create more jobs

• try to increase their wealth

The aim of anti-trust legislation is to

• ensure that U.S. companies are strong and profitable.

• prevent companies from developing monopolies.

• prevent competition.

• protect monopolies.

For many years, U.S. car makers enjoyed dominance in our country.  When Toyota and Honda began selling cars in the U.S., citizens began to buy those cars from Japan.  In order to not lose business, U.S. car makers had to improve their cars.  This is an example of the government using _________________ to promote competition.

• global trade

• legislation

• production

• monopolies