Economics Review

Which of the following terms fills in the blank?

• Taxes
• Income
• Savings
• Investment

What kind of business is best described by these statements?

• Corporation
• Partnership
• Proprietorship
• Entrepreneur

Hot Dog City is competing with Hot Dog Town.  Which incentive would most likely motivate consumers to eat at Hot Dog City?

• Hot Dog City decreases their supply of hot dogs to create a scarcity situation.
• Hot Dog City advertises that it has been in business for 10 years.
• Hot Dog City offers a free drink with purchase at Hot Dog City.
• Hot Dog City raises their prices in order to make more money per sale.

The government of the Soviet Union provided food for its citizens.  However, the food was often in short supply, had little variety, and was of poor quality.  What type of economy was the Soviet Union?

• Mixed
• Market
• Command
• Traditional

What is the opportunity cost of going to the movies?

• Value of the computer game.
• Price of the movie tickets.
• Time of buying the computer game.
• Enjoyment of seeing the movies.

private financial institutions encourage saving and investing by paying interest on deposits

• true
• false

owners share the profits and liability is limited to the amount of their investments

• partnership
• corporation
• proprietorship
• entrepreneur

which is not an example of a private financial institution

• banks
• congress
• savings and loans
• credit unions

which amendment allows Congress to tax personal and business incomes

• 1st
• 5th
• 16th
• 21st

When the government issues coins and currency, people accept it in exchange for goods and services because

• it is against the law not to
• it is too difficult to create their own money
• the have confidence in the government
• they do not trust the government