Ch. 4 The Nation's Economy

Which best explains what causes someone to become a consumer?

•   A person needs or wants something.

• A person has spent time deciding what to purchase.

• A person wants to make money by selling something.

•   A person has made something and wants to share it with others.

For a consumer, which is part of making an economic choice?

     

• The consumer makes goods and services to sell to others.

•   The consumer moves to a place that has very few businesses.

• The consumer purchases everything he or she needs or wants.

• The consumer weighs his or her needs and wants before spending money.

In a free enterprise system, what is the answer to the economic question, “How should goods and services be produced?”

• They should be produced by the government.

•   They should be produced by the largest sector.

•   They should be produced by producers in the market.

• They should be produced by consumers in the market.

What sector of the economy includes teachers?

• services sector

•   tourism sector

•   entertainment sector

• manufacturing sector

A public park is an example of __________.

A       

B  

C       

D     

• a good produced by the government that is available to everyone

•       a service provided by the government that protects private property

• a good consumed by the government that supports private companies

•    a service produced by the government that is available only to property owners

Bartering is __________.

   

• the type of money used in a particular place

• the profit that a business earns over a period of time

• the exchange of one type of good or service for another

•   the risk an entrepreneur takes when starting a new business

the land or goods that people own or companies own.

   

• the type of money used in a particular place

• the profit that a business earns over a period of time

• Private property

The price of various goods has been steadily rising for months. As a result, people are not able to buy things they need for the same amount of money as they could a year ago. This is evidence of __________.

• Profit

• inflation

•    supply and demand

• bartering and borrowing

Which example shows how a business can make a profit?

• produce a book for $0 and sell it for $0

• produce a book for $5 and sell it for $5

• produce a book for $5 and sell it for $15

• produce a book for $15 and sell it for $5

Which reason explains why an entrepreneur’s business might fail?

     

• Materials were too cheap.

• The company was not profitable.

• A bank would not loan any money.

• There was not enough competition.