Chapter 17 Review: American Economy

Which country has the world's largest economy?

• China

• India

• United States

• Germany

Which of the following is an example of a service?

• a mobile phone

• a book

• a haircut

• a loaf of bread

People are motivated to open businesses because they are guaranteed to earn a profit.

• True

• False

The Wealth of Nations was written by

• James Madison

• Kincaid

• Alexander Hamilton

• Adam Smith

Which of the following is sold in the factor market?

• pants sold to a store owner

• a computer sold to a student

• the labor of a farmer

• tools sold to a home owner

Making goods and providing services create -------- for individuals in the economy.

• GDP

• Market Value

• Income

• Factors of Production

Which of the following is an entrepreneur?

• The owner of the Telegraph

• The editor in chief of a magazine

• A reporter for the New York Times

• A photographer for National Geographic

Consumers participate in both the factor and product markets.

• True
• Not applicable
• False
• Partially true

Money flows TO the business sector through the

• Factor market

• Consumer Market

• Product Market

• Factors of production

In a free enterprise system

• Individuals must have government approval to start new businesses

• Only certain groups may start their own businesses

• Businesses are heavily regulated by the government

• Individuals and groups can start their own businesses.