Economics 2 &3 SOL Review

What does the economic flow diagram show?

• when businesses raise and lower prices on consumers

• how taxes are collected and spent in an economy

• the continuous movement of money, goods, services and resources in an economy

• how supply, demand and price interact in a mixed economy

In economic flow, who owns and sells resources?

• individuals

• businesses

• governments

Social Security, postal service, and national defense are paid for with....

• property taxes

• sales taxes

• income taxes

Ways governments pay for public goods and services?

• borrowed money

• fines and fees

• taxes

Laws designed to discourage monopolies are called ...

• immunity laws

• antitrust legislation

• federalism

• protemporal laws

TRUE or FALSE: The government encourages competition among businesses.

• TRUE

• FALSE

The government agency that protects competition by enforcing antitrust laws?

• FCC

• FTC

• OSHA

• EPA

Two types of financial institutions are:

• Federal Reserve

• credit unions

• banks

• piggy banks

Financial institutions encourage depositors to save and invest by paying ......

• taxes

• revenue

• fees

• interest

The central bank of the United States is ..

• Bank of America

• Corporations

• Electoral College System

• Federal Reserve System