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2-3: Other Measures of Economic Activity

Total questions: 15

Worksheet time: 43mins

Name
Class
Date
1.

The money spent by a business for an item that will be used over a long period of time.

a)

Capital Spending

b)

Capital Project

c)

Capital Letter

d)

Business Capital

2.

Involve spending by businesses for items such as land, buildings, equipment and new products.

a)

Capital Spending

b)

Capital Projects

c)

Capital Budget

d)

Closed Captioning

3.

The money for capital projects comes from 3 main sources. They are: (choose all 3)

a)

personal savings

b)

stock investments

c)

bonds

d)

income taxes

4.

businesses use money that you deposit into a bank

  • In return the bank pays you interest for keeping your money there.

  • The savings rate for a country is an important factor in measuring economic growth

  • THIS IS CALLED:

a)

Personal Savings

b)

Personal Checking

c)

Personal Investments

d)

Sliding into your DMs

5.

This investment activity states that corporations are a major type of business organization where people invest by becoming part owners of a corporation

a)

The stock market

b)

Personal Savings

c)

The Bond Market

d)

Stocks and Bonds

6.

Stocks:

(choose all that apply)

a)

represent ownership in a corporation

b)

value can be affected by many factors

c)

supply and demand are major factors of stock value

d)

stock ownership is called equity

7.

In this Investment activity corporations borrow money from you.

a)

The stock market

b)

The bond market

c)

Stocks and Bonds

d)

Capital Spending

8.

Bonds:

(choose all that apply)

a)

represents debt for an organization

b)

means you have lent money to an organization

c)

means you are paid interest for the use of your money

d)

its value is affected by supply and demand

9.

When people expect services from federal, state and local governments this can lead to

a)

Government Debt

b)

Cry babies

c)

Too many taxes

d)

Government Buying Power

10.

A budget surplus is when

a)

corporations borrow money from you

b)

a government spends less than it takes in

c)

a government spends more than it takes in

d)

debt for an organization

11.

If a budget surplus exists a government may increase taxes.

a)

True

b)

False

12.

If a government spends more than it takes in, that is a

a)

Budget deficit

b)

Budget surplus

c)

National Debt

d)

Business debt

13.

The National Debt is (choose all that apply)

a)

the total amount owed by the federal government

b)

always balancing out to $0

c)

$37.4 million

d)

$37.4 trillion

14.

Common borrowing methods used by businesses are: (choose all that apply)

a)

Loans

b)

bonds

c)

mortgages

d)

taking money out of the cash register

15.

True or False

People can't get into personal financial trouble by using credit cards.

a)

True

b)

False