Biztown Unit 1: Community and Economy Assessment

Which best describes the circular flow of an economy?

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

• the people and things needed to produce goods and services

• work produced by human resources

• a model or sample of a product to be produced

A good produced and offered for sale

• resource

• product

• labor

• service

Who pays for private goods and services?

• philanthropists

• government

• people who use them

• taxpayers

The amount of money left after all business expenses have been paid.

• Prototype

• Profit

• Product

• Scarcity

Due to scarcity, people cannot have all of the things they want.

• True

• False

A free enterprise economy is a system in which economic decisions are made in markets by consumers and businesses with little government influence.

• True

• False

Payments that citizens and businesses are required to make to a government to pay for public goods and services is called gross pay.

• True

• False

Citizenship is the effort to increase the well-being of people through charitable giving.

• True

• False

List two responsibilities that are on the JA BizTown Citizen Contract.

• Pay taxes and obey laws

• Vote in elections and serve on a jury

• Attend school and respect others

• Volunteer in the community and recycle

What are the three types of resources?

• Natural, Human, Capital

• Land, Labor, Capital

• Renewable, Non-renewable, Human

• Physical, Financial, Intellectual